APR Calculator
See the true yearly cost of a loan once its fees are included, next to the advertised interest rate. Everything runs in your browser. Your figures are never sent anywhere and nothing is stored.
Interest rate vs APR: what is the difference?
The interest rate is only the price of the money you borrow. The APR also counts the fees you pay to get the loan, such as an origination or arrangement fee, and spreads them across the term. That is why lenders are usually required to show the APR: it lets you compare two loans fairly even when their fees are different.
If a loan has no fees, the APR and the interest rate are the same. Every extra fee pushes the APR above the rate, and the shorter the loan, the bigger that gap becomes.
How to use the APR calculator
- Enter the loan amount you are borrowing.
- Enter the advertised interest rate per year.
- Enter the total upfront fees charged to take out the loan (use
0if there are none). - Enter the term in years or months.
The results update as you type. Need only the monthly payment? Use the loan calculator.
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Frequently asked questions
What is the difference between the interest rate and the APR?
The interest rate is the cost of borrowing the money itself. The APR (Annual Percentage Rate) adds the loan's upfront fees (origination fees, arrangement fees, points) and spreads them over the term, so it shows the true yearly cost. When there are fees, the APR is always higher than the interest rate.
How is the APR calculated?
The monthly payment is worked out on the full loan amount at the advertised rate. The APR is then the rate at which those same payments would repay only the money you actually receive, which is the loan amount minus the fees. The calculator finds that rate numerically and converts it to an annual figure.
Why does a shorter loan have a higher APR for the same fee?
A fixed fee is spread over fewer months on a short loan, so it adds more to the yearly cost. The same fee on a longer loan is spread thinner, so the gap between the APR and the interest rate gets smaller.
What is the difference between APR and APY?
APR is a simple yearly rate (the monthly rate times 12) that includes fees. APY (annual percentage yield) includes the effect of compounding within the year. Loans are usually quoted in APR; savings accounts in APY.
Should I compare loans by APR or by interest rate?
Compare by APR. Two loans can have the same interest rate but very different fees, and the APR is the figure that captures both. Also check the total cost over the full term.
Is my data sent anywhere?
No. The calculation runs entirely in your browser. Your figures are never uploaded and nothing is stored.