APR Calculator
Calculate the Annual Percentage Rate (APR) to understand the true cost of borrowing including fees
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Discover the True Cost of Your Loan
Interest rate and APR are not the same thing. APR includes fees and shows the real cost of borrowing. Our calculator reveals the true annual percentage rate on any loan, helping you compare offers accurately and avoid hidden costs. Don't be fooled by a low interest rate with high fees.
What is APR?
APR (Annual Percentage Rate) is the total yearly cost of borrowing, including interest and fees, expressed as a percentage. A 5% interest rate with $1,000 in fees on a $20,000 loan might have a 5.5% APR. Federal law requires lenders to disclose APR so borrowers can compare offers apples-to-apples.
APR Concept
APR = Rate that equates loan payments to net proceedsHow to Use This Calculator
APR Analysis Scenarios
Mortgage Comparison
Compare loans with different rates and fees to find the best overall deal.
Points Analysis
See if paying points to lower your rate is worth the upfront cost.
Loan Offer Verification
Check if the lender's disclosed APR matches your calculation.
Frequently Asked Questions
APR includes fees (origination, closing costs, points) spread over the loan term. The more fees charged, the bigger the gap between interest rate and APR.