APR Calculator

How to read your result

The real APR is the headline number, and the gap between it and your note rate is the fee impact — the wider that gap, the more the fees are costing you relative to the rate alone. Financed fees raise APR by growing the balance you pay interest on; upfront fees raise it by shrinking the cash you actually receive while you still repay the full amount. In Mortgage mode, points and PMI are folded into that same real-APR calculation. Switch to Compare Offers to see up to three loans side by side on both APR and total cost, and check Early Payoff if you don't plan to keep the loan to term — APR spreads upfront fees over the full period, so paying off early means those fees land on fewer months than the headline rate assumes.

The APR formula

Worked example

A $20,000 loan at a 6.5% note rate over 60 months, with $500 of upfront fees, has a monthly payment of about $391. Because the $500 reduces the net proceeds to $19,500 while you still repay the full $20,000, the real APR works out to roughly 7.56% — about 1.06 points above the note rate. That gap is the fee impact in a single number: comparing this loan's 6.5% rate to another lender's rate, without accounting for fees, would understate its real cost. Comparing the two APRs instead tells you which loan is actually cheaper.

Assumptions

• Models a fixed-rate amortized loan with regular payments and solves APR numerically.
• Assumes no missed or late payments, no variable-rate changes, and no balloon payment unless you enter one.
• Fee treatment follows your classification (financed, upfront, or excluded); financed fees are added to the balance, upfront fees reduce net proceeds.
• PMI, where entered, is assumed to apply until the balance reaches 78% of the home’s value.
• Results are estimates from the values you enter — not a lender quote or an official APR disclosure.

Limitations

• Not included by default: property tax, homeowners insurance, prepayment penalties, variable-rate changes, and third-party charges you classify as excluded.
• A lender’s official APR may differ because fee inclusion depends on loan type, jurisdiction, and disclosure rules.
• Mortgage APR is not your total housing cost — it excludes taxes, insurance, HOA dues, and most closing costs.
• Use this to compare offers; rely on the lender’s disclosure for the exact, legally binding figure.

Frequently asked questions

Related calculators

Tools that build on the same loan and interest math:

• Loan CalculatorWork out the monthly payment, total interest, and payoff date for any fixed-rate loan from the amount, rate, and term.
• Auto Loan CalculatorCalculate a car-loan payment from price, down payment, trade-in, rate, and term, including the total cost of financing.
• Mortgage CalculatorEstimate monthly payments, interest, taxes, insurance, PMI, and amortization using practical home-loan assumptions.
• Personal Loan CalculatorEstimate repayments on an unsecured personal loan and see how the rate and term change what you pay overall.
• Amortization Schedule CalculatorBuild a full payment-by-payment schedule showing how each instalment splits between principal and interest.

Read the guides

For the amortization formula behind the payment that APR is built on, worked through step by step, see How to Calculate Monthly Loan Payments Before Borrowing.

If you're comparing offers on a home purchase specifically, see Mortgage Payment vs Total Loan Cost: What Borrowers Often Miss.