APR Calculator
Find the true annual percentage rate (APR) of a loan, including fees.
Formula
First find the monthly payment from the loan amount (L), the monthly rate (i) and the number of months (n):
i = interest rate ÷ 12 ÷ 100
Then find the monthly rate j that makes the payments equal to the money you actually receive, which is the loan minus fees (F):
APR = j × 12
There is no simple way to solve for j by hand, so the calculator finds it by repeated trial. With no fees, the APR equals the interest rate.
Examples
| Loan | Rate | Months | Fees | Payment | Total paid | APR |
|---|---|---|---|---|---|---|
| 10,000 | 8% | 36 | 0 | 313.36 | 11,281.09 | 8.00% |
| 10,000 | 8% | 36 | 300 | 313.36 | 11,281.09 | 10.08% |
| 5,000 | 12% | 24 | 100 | 235.37 | 5,648.82 | 14.05% |
| 200,000 | 6.5% | 360 | 4,000 | 1,264.14 | 455,088.98 | 6.70% |
Common questions
What is APR?
APR is the yearly cost of borrowing, shown as a percentage. It includes the interest rate and certain fees, so it is higher than the rate when a loan has fees.
What is the difference between APR and APY?
APR is the cost of a loan and does not include compounding. APY is the return on savings and does include compounding.
Why is my APR higher than my interest rate?
Fees such as origination or processing charges raise the cost of the loan, so the APR goes up even though the monthly payment stays the same.