APR Calculator
Find the annual percentage rate (APR) of a loan with fees — the real yearly cost of borrowing.
What APR means
APR is the yearly rate at which the money you actually receive equals all the payments you make. Fees paid upfront reduce the money you receive, so the APR rises above the interest rate.
Example
A $10,000 loan at 9% for 3 years costs $318.00 a month. With a $300 origination fee you receive only $9,700, but still repay 36 × $318.00. The APR is 11.09%.
APR and effective annual rate
In the US, APR is the monthly rate × 12. The effective annual rate (11.68% in the example) also counts monthly compounding. In the EU, lenders must quote this effective rate instead.
Frequently asked questions
How is APR calculated?
Find the monthly rate at which the amount you receive equals the present value of all payments, then multiply it by 12.
Why is APR higher than the interest rate?
Because it includes fees. With no fees, APR and the interest rate are the same.