APR Calculator
True yearly cost of a loan including fees.
Enter your values
Results update instantly as you type — no submit needed.
Results
- APR
- 8.53%
- Monthly payment
- $500.95
- Total paid
- $30,056.92
- Total interest
- $5,056.92
- Fees financed
- $600.00
Working
- 1Payment on $25,000.00 at 7.5% = $500.95
- 2Solve for the rate that gives that payment on $24,400.00 → 8.53%
Quick answer
APR folds fees into the interest rate, so it shows the real yearly cost of borrowing rather than the headline rate.
APR = rate that makes payments equal (loan − fees)
How to use the APR Calculator
- 1Enter the loan amount and quoted interest rate.
- 2Add the term in years.
- 3Enter all fees rolled into the loan.
Frequently asked questions
Why is APR higher than the interest rate?
Because APR spreads origination and closing fees across the loan term, raising the effective cost.
Is APR the best way to compare loans?
Yes for loans you keep to term; if you refinance early, upfront fees hurt more than APR suggests.