Overview
What Is APR?
Annual Percentage Rate (APR) represents the true annual cost of a loan, including both interest and certain fees, expressed as a percentage.
Calculate the true annual percentage rate of a loan.
Annual Percentage Rate (APR) represents the true annual cost of a loan, including both interest and certain fees, expressed as a percentage.
Useful for comparing loan offers on an apples-to-apples basis, since APR includes fees that a simple interest rate doesn't.
Input the principal and any upfront fees.
Input the stated interest rate and loan length.
The result updates automatically.
Interest rate is just the cost of borrowing the principal; APR includes fees, giving a more complete cost picture.
Because APR factors in upfront fees, spreading their cost across the loan term as an effective rate increase.
APR gives a more complete comparison since it accounts for fees that a bare interest rate doesn't.
Origination fees, points, and certain closing costs are commonly included, though exact inclusions vary by loan type and regulation.
This provides a simplified estimate - official APR disclosure calculations (especially for mortgages) can be more complex.
Rarely, and typically not under standard calculations - APR is usually equal to or higher than the stated interest rate.
No, calculations happen entirely in your browser.
Yes, effective APR calculations account for how fees and compounding affect the true annual cost.
Generally yes for cost comparison, though also consider loan term, prepayment penalties, and other loan features.
Yes, completely free with no sign-up required.