Finance Tools
APR Calculator
Estimate the annual percentage rate (APR) for a loan, including upfront fees and closing costs.
Estimate the annual percentage rate (APR) for a loan, taking both the interest rate and upfront fees into account. Use APR to compare loan offers on an apples-to-apples basis.
How to use this apr calculator
- Enter the loan amount you will receive from the lender.
- Enter the nominal annual interest rate for the loan.
- Enter the term of the loan in years.
- Enter any upfront fees or closing costs you pay at the start of the loan.
- Click Calculate to see the estimated APR, which reflects the interest rate plus the impact of fees over the life of the loan.
Example
For example, suppose you take a $20,000 loan at 8% interest for 5 years with $600 in upfront fees. This calculator will show you:
- Your standard monthly payment based on the nominal interest rate and term.
- An estimated APR that is higher than 8% because it includes the impact of the $600 fees.
- How APR changes if you increase or decrease fees or change the term length.
- A better comparison metric when you are choosing between different loan offers.
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