Finance Tools

Effective Rate After Fees Calculator

Estimate your effective interest rate after lender fees by converting upfront fees into an equivalent rate increase over your time horizon.

This calculator estimates an effective rate after fees by spreading your upfront fees over your time horizon and converting that cost into an equivalent rate increase. It’s a simple “apples-to-apples” comparison tool (not an official APR calculation).

How to use this effective rate after fees calculator

  1. Enter your loan amount, term, and stated interest rate.
  2. Enter total upfront fees (origination, lender fees, points if applicable).
  3. Enter your time horizon (how long you expect to keep the loan).
  4. Click Calculate to see a simple estimate of the effective rate after fees.

Example

Suppose you’re comparing two loans and one has higher fees but a lower rate.

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