How it works
Calculate the Annual Percentage Rate (APR) of a loan, which includes interest and fees.
Input query strings and outputs
Use an input name in this page’s URL as ?name=value, and join additional inputs with &. Portable shared links may instead use the compact ?ac= state parameter.
Input query strings
4-
?loanAmount=Loan AmountNumber · Optional · Default: 20,000
-
?interestRate=Interest RateNumber · Optional · Default: 8
-
?term=Loan Term (Years)Number · Optional · Default: 5
-
?fees=Loan Fees / CostsNumber · Optional · Default: 500
Outputs
1-
resultResultText · Primary output
result contains the calculator’s complete rendered result area, including its visible result cards, tables, charts, and messages.
Uncover the true annual cost of borrowing
Description
The APR Calculator is an essential consumer protection tool. While lenders advertise a “Nominal Interest Rate,” they often charge various fees that increase the actual cost of borrowing. This calculator performs the complex math needed to find your “Real APR”—the true annual rate that accounts for both interest and upfront fees.
Inputs
- Loan Amount: The principal amount you are borrowing ($).
- Interest Rate: The nominal (advertised) annual rate (%).
- Loan Term (Years): The length of the loan repayment.
- Loan Fees / Costs: All upfront fees (origination, processing, points, etc.) ($).
Outputs
- Real APR: Your true annual percentage rate. This will always be higher than the nominal rate if fees are involved.
- Monthly Payment: Your standard repayment installment.
- Total Cost: The grand total of all interest payments plus upfront fees.
Chart
- N/A: This tool focuses on high-precision numeric solving for the true cost of credit.
“Good to Know”
- US law requires lenders to disclose the APR so you can easily compare two loans. A 5% loan with $5,000 in fees might be more expensive than a 5.5% loan with $0 in fees.
- This calculator uses an iterative solving method (binary search) to find the APR, as there is no direct algebraic formula when fees are included in the initial principal calculation.
- Fees like “Discounts Points” can lower your nominal rate but increase your APR if you don’t stay in the loan long enough to recover the cost.
Examples
Example 1: Standard Mortgage Refi
- Input:
- Amount: $200,000
- Rate: 6.5%
- Term: 30 Years
- Fees: $4,000
- Output:
- Nominal Rate: 6.50%
- Real APR: 6.689%
Example 2: Small Personal Loan (High Fee)
- Input:
- Amount: $5,000
- Rate: 10%
- Term: 3 Years
- Fees: $250
- Output:
- Real APR: 13.6%
- (Illustrates how a small fee can dramatically impact the APR on a smaller loan).
Example 3: Zero-Fee Loan
- Input:
- Fees: $0
- Output:
- Shows that the APR is exactly equal to the nominal interest rate.