APR Calculator
Find the real cost of a loan. APR accounts for lender fees on top of the nominal interest rate, giving you the true annual cost of borrowing so you can compare offers apples-to-apples.
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Enter loan details to see the true APR
Disclaimer: This calculator provides an estimate for educational purposes only and is not financial advice. Actual APR may vary based on lender-specific fee structures and compounding conventions. Consult your loan disclosure documents or a licensed financial advisor before making borrowing decisions.
About the APR Calculator
The Annual Percentage Rate (APR) reflects the true yearly cost of a loan, including the nominal interest rate plus lender fees such as origination charges, processing fees, or points. Because fees are spread over the loan’s life, APR is almost always higher than the advertised interest rate.
How It Works
This tool calculates your regular loan payment using the stated nominal rate, then finds the interest rate that would produce that same payment if the loan amount were reduced by the upfront fees. That rate is your true APR — the rate you are effectively paying once fees are factored in.
Why APR Matters
Two loans with identical nominal interest rates can have very different real costs if one lender charges higher fees. The Truth in Lending Act requires U.S. lenders to disclose APR precisely so borrowers can compare offers on equal footing. Always compare APR, not just the interest rate, when shopping for a loan.