APR Calculator – True Annual Cost of a Loan
Calculate the APR of any loan including fees. See the true cost of borrowing beyond the stated interest rate.
📊 Finance📐 APR = effective annual rate including all fees
Loan amount ($)
Interest rate (%)
Term (years)
Total fees ($)
Please enter valid values.
Formula & Reference
| Variable | Formula | Units |
|---|---|---|
| APR Calculator – True Annual Cost of a Loan | APR = effective annual rate including all fees | % |
Step-by-Step Examples
Example 1
$25K, 8%, $700 Fees
$25K, 8%, 5 years, $700 fees.
- Stated rate: 8% | APR: ~8.65%
- Fees add 0.65% to effective cost
✓ APR: ~8.65%
Example 2
Mortgage $300K, 6.5%, $4K
$300K, 6.5%, 30yr, $4K closing.
- APR: ~6.63% — fees matter for long loans
✓ APR: ~6.63%
Example 3
No-Fee Loan
Same loan, zero fees.
- APR = Stated rate with no fees
- Shop for low-fee loans!
✓ APR = Rate
Real-World Applications
Borrowers
Compare true cost of competing offers.
Loan Shoppers
APR is the apples-to-apples metric.
Planners
Explain real loan cost to clients.
Business Owners
Compare business loan offers correctly.
Common Mistakes to Avoid
⚠️
Comparing rate not APR
Two loans with the same rate but different fees have different APRs. Always compare APR.
⚠️
APR for short-term loans
A 15% fee for a 2-week payday loan = 390% APR. APR reveals the true cost of short-term borrowing.
Frequently Asked Questions
APR vs interest rate? ▾
Rate: just interest charged. APR: interest + fees as annual %. APR is the true cost of borrowing.
Required by law? ▾
TILA requires APR disclosure on all loans. Look for it in loan documents.
Good APR? ▾
Personal loans: 7-15%. Mortgage: current market rate. Auto: 5-8% good credit. Credit cards: under 20%.