APR calculator
APR rolls interest and fees into one yearly rate, so loans with different fees can be compared fairly.
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How to use it
- Enter loan amount, quoted annual rate, repayment term, fees and how fees are paid.
- The result appears straight away and updates as you edit.
- Copy the result, or copy a link that keeps the same values to share it.
How it is calculated
The payment comes from the quoted rate, then we solve for the monthly rate x where net amount = payment × (1 − (1 + x)^−n) ÷ x. APR = x × 12, effective annual rate = (1 + x)^12 − 1.
Example
Inputs: Loan amount = 20,000, Quoted annual rate = 8 %, Repayment term = 48 months, Fees = 500, How fees are paid = Upfront or deducted. Result: APR: 9.323%; Effective annual rate: 9.732%; Monthly payment: 488.26.
Limits and caveats
- APR is the nominal figure (monthly rate × 12) used in loan disclosures; the effective annual rate is shown next to it.
- Leaves out recurring fees or insurance paid with each installment.
Questions about this tool
How is APR different from the quoted rate?
The quoted rate covers interest only. APR adds the effect of fees, giving the true cost as a yearly rate.
Why does APR change with how fees are paid?
Financed fees accrue interest, while upfront fees shrink what you receive. The results are close but not equal.
What is the effective annual rate?
It is the result of monthly compounding over a full year, slightly above the APR whenever the rate is above zero.