APR Calculator

The nominal rate ignores fees, so two loans with the same rate can cost different amounts. APR rolls the fees into a single yearly figure, which is why lenders are often required to disclose it.

The payment is computed from the full amount at the nominal rate; the APR is the rate at which the present value of those payments equals the amount you actually receive (loan minus fees).

A $10,000 loan at 6% over 36 months with $300 of fees has an APR above 6% because the fees raise the effective cost.

1. Enter the loan amount and nominal rate.
2. Enter the term in months.
3. Add the upfront fees and read the APR.

• Comparing nominal rates while ignoring fees.
• Forgetting that a longer term can lower the payment but raise total cost.

The APR Calculator finds a loan’s true annual percentage rate — the effective yearly cost once upfront fees are included — so you can compare offers on a like-for-like basis.

Borrowers comparing loans, credit and finance deals.

• APR including upfront fees.
• Monthly payment and total of payments.
• Shows the net amount you actually receive.
• Fairer comparison than the headline rate.

• Comparing two loan offers with different fees.
• Seeing the real cost of points or origination fees.
• Checking a quoted APR.