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APR Calculator

Two loans with the same interest rate can cost very different amounts once fees are included. The APR folds upfront fees into one comparable rate. Enter the rate, term and fees to find it.

9.744%APR including fees

Interest rate8%
Monthly payment$405.53
Cash you actually receive$19,200.00
Total interest + fees$5,131.67

APR spreads upfront fees over the loan term so loans with different fees can be compared.

How this calculator works

Your monthly payment is based on the full loan amount at the stated rate.

Upfront fees such as origination fees or points reduce the cash you actually receive, but you still repay the full amount.

The APR is the rate at which the cash you receive would produce the same monthly payment. The calculator finds it by trial (a numerical search).

The shorter the loan, the more fees raise the APR, because they are spread over fewer payments.

Worked example

$20,000 at 8% for 5 years with $800 of fees

  1. Monthly payment: $405.53.
  2. Cash received after fees: $19,200.
  3. APR: about 9.74%, the true yearly cost of borrowing.

Questions people ask

Is APR the same as the interest rate?

No. The interest rate sets the payment; the APR adds most upfront fees. Lenders in the US must disclose APR so loans can be compared.

What fees are included in APR?

Typically origination fees, points and some closing costs. Late fees and optional add-ons are not.

How is APR different from APY?

APR is used for borrowing and ignores compounding; APY is used for savings and includes compounding.

Last reviewed October 2, 2026