Money
APR Calculator
Enter the loan amount, stated interest rate, term, and any upfront fees. The calculator returns the monthly payment, the total finance charge, and the implied annual percentage rate (APR) that includes the fees.
Loan details
Nominal annual rate quoted by the lender.
Origination, prepaid finance charges, etc.
How this works
The monthly payment is computed from the loan amount and the stated rate. Fees reduce the cash you actually receive at closing, so the same payments correspond to a higher effective interest rate. The calculator solves for the rate that equates the discounted stream of payments to the net cash received.
Educational estimate. Real APR disclosure (under U.S. Truth in Lending Act) uses specific fee definitions, day-count conventions, and rounding rules that vary by product. This page is not TILA-compliant disclosure and does not replace a lender quote.
Estimated APR
7.563%
Stated rate 6.5%; difference ≈ 1.063 points
APR rises as upfront fees increase or as the loan term shortens. Two loans with identical stated rates can have very different APRs once fees are folded in; that is why APR is the better apples-to-apples comparison.
Examples
$20,000 at 6.5% for 5 yr, $500 fees
Monthly $391; APR ≈ 7.04%
$300,000 at 7% for 30 yr, $3,000 fees
Monthly $1,996; APR ≈ 7.10%
$10,000 at 9% for 3 yr, $200 fees
Monthly $318; APR ≈ 10.46%
Zero fees
APR ≈ stated rate (to rounding)
How it works
The monthly payment comes from the standard amortization formula on the full loan amount at the stated rate. APR is the rate that equates the discounted stream of those same monthly payments to the net cash you actually receive after fees.
Payment · P = L · r / (1 − (1+r)^−n)
APR (monthly i) · net = P · (1 − (1+i)^−n) / i; APR = 12 · i
net = loan amount − upfront fees. Bisection solves for i.
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- Compound interest calculator for the growth side of the same math (savings, not loans).
- All money calculators.
Frequently asked questions
APR is the annualized cost of borrowing including the stated interest rate plus most fees. Two loans with the same stated rate can have different APRs if their fees differ. APR makes loans easier to compare than rate alone.
It computes the monthly payment from the loan amount, stated rate, and term. Then it subtracts upfront fees from the loan amount to get the net cash you actually receive. Finally it solves for the rate that discounts the payments back to that net cash value.
Fees increase your real cost of borrowing without changing the payment. The lender hands you (loan - fees) but you still pay back the full loan plus interest. The implied rate on that cash is higher than the stated rate.
Approximately, but not exactly. U.S. lender APR disclosures under TILA use specific definitions of finance charges, day-count conventions, and rounding rules. This calculator is an educational estimate, not TILA disclosure.
Common origination, prepaid finance charges, mortgage points, discount fees, and similar costs charged at closing. Third-party fees that the lender does not collect (appraisal, title, recording in some products) may or may not be in APR depending on the loan type and jurisdiction.
No. The calculator is an educational tool that compares stated rate against an implied APR for a given fee load. Always read the lender's official disclosure and consult a qualified financial professional for advice.
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