APR Calculator

The interest rate on a loan is not the whole story. The APR (Annual Percentage Rate) includes fees and other costs to reveal the true cost of borrowing. Calculate and compare APR on any loan.

Loan details True cost of borrowing
$
%
$
Lender fee, sometimes called "points"
$
Appraisal, title, attorney fees, etc.
pts
1 point = 1% of loan amount
Frequently asked questions
What is APR vs. interest rate? ›
The interest rate is the cost of borrowing the principal only. APR (Annual Percentage Rate) includes the interest rate plus fees such as origination fees, closing costs, and discount points — expressed as a yearly rate. APR is the standardized measure required by law (Truth in Lending Act) for comparing loans. Always compare APR, not just the interest rate.
Why do lenders advertise interest rates instead of APR? ›
Interest rates are always lower than APR and look more attractive in marketing. A mortgage advertised at 6.75% might have an actual APR of 7.1% once fees are included. Lenders are required to disclose APR in loan documents, but it may not be prominently featured in advertising. Always ask for the APR before comparing offers.
What fees are included in APR? ›
APR typically includes origination fees, discount points, mortgage broker fees, and some closing costs (like prepaid interest). APR does NOT include third-party fees like appraisal, title insurance, attorney fees, homeowner's insurance, or property taxes — though some lenders may roll some of these in. Always ask which fees are included in a lender's quoted APR.
How can I use APR to compare loan offers? ›
When comparing two loans, the one with the lower APR is generally the better deal — assuming you keep the loan for its full term. If you plan to sell or refinance before the loan term ends, paying higher upfront fees for a lower rate may not be worth it. Use APR as your primary comparison metric, but also consider how long you plan to keep the loan.

About this APR calculator

Our APR calculator computes the true Annual Percentage Rate of a loan by factoring in all upfront fees and costs alongside the stated interest rate. Use this to unmask the real cost of a loan offer and compare competing lenders on a level playing field.

When a lower rate is actually more expensive

Lenders sometimes offer a lower interest rate in exchange for paying more points upfront. While the monthly payment is lower, the higher upfront costs can make this a worse deal if you sell or refinance before recovering those costs. APR helps you compare these scenarios directly.