APR Calculator
Calculate the Annual Percentage Rate (APR) of your loan, including fees and interest. Find the true cost of borrowing with our free APR calculator.
About APR Calculator
Find the true cost of a loan by calculating the Annual Percentage Rate (APR). Compare loans with different fee structures.
Frequently Asked Questions
What is APR?
APR (Annual Percentage Rate) includes both the interest rate and fees to show the true cost of borrowing.
Why is APR higher than rate?
Because it factors in closing costs and fees spread over the loan term.
Which should I compare?
Always compare APRs rather than just interest rates to find the best deal.
Does it cover all fees?
It covers lender fees (origination, points) but usually not third-party ones like appraisal in some contexts.
Is it free?
Yes.
Is it accurate?
Yes, uses iterative financial calculation.
Useful for mortgages?
Essential for mortgages.
Useful for car loans?
Yes.
Is a lower APR always better?
Generally yes, but consider upfront cash vs monthly cost.
How is it calculated?
It solves for the discount rate that equates the net loan amount to the future payments.