APR Calculator
Calculate the true annual percentage rate including fees.
APR wraps the interest rate and certain upfront fees into a single number that better reflects a loan's true cost — this estimates it from your loan terms and fees.
Why APR is usually higher than the stated interest rate
Upfront fees effectively reduce how much money you actually receive while you still repay the full amount, which raises the true cost of borrowing — APR captures that, which is why comparing APRs (not just interest rates) between lenders gives a fairer comparison.
Frequently asked questions
Why do two loans with the same interest rate have different APRs?
Different lenders charge different upfront fees (origination fees, points, etc.) — those fees widen the gap between the stated rate and the true APR.
Should I always choose the loan with the lowest APR?
It's a strong signal, but also consider the loan term and total dollar cost, especially if you don't plan to keep the loan for its full term, since some fee structures favor short holding periods and others favor long ones.