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APR Calculator (Loan)

Finance

Calculate the true Annual Percentage Rate (APR) of a loan, factoring in upfront fees, so you can compare loan offers on an apples-to-apples basis rather than just the stated nominal rate.

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USD
$1,000.00$5,000,000.00
%
0.1%30%
years
1 year40 years
USD
$0.00$100,000.00

Monthly Payment

$1,229.08

Based on the loan amount plus any fees rolled into the financed balance

USD

APR (fee-adjusted)

6.232

The rate that equates this payment stream to the amount you actually needed, before fees were rolled in

Effective APR (annualized compounding)

6.413

The APR expressed as a true annual compounding rate

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Calculator Stats

Odeh Ahwal

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Odeh Ahwal
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Frequently Asked Questions

Why is APR higher than my loans stated interest rate?

APR spreads any upfront fees you financed into the loan across the full term, so it reflects the true cost of borrowing, not just the nominal interest rate on paper.

Is a lower APR always the better loan?

Usually, but only if the loan term and other terms match. Comparing APR is most useful across loans with the same term length.

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