Finance Tools
Rate vs APR Difference Calculator
Understand the difference between interest rate and APR by seeing how fees increase the effective borrowing cost.
APR includes fees and other costs beyond the stated interest rate. This tool shows how those fees widen the gap between your rate and APR in monthly payment terms.
How to use this rate vs apr difference calculator
- Enter your loan amount, term, and stated interest rate.
- Enter estimated APR (from a lender quote).
- Enter total upfront fees included in the APR.
- Click Calculate to see how fees translate into an effective rate difference.
Example
Suppose a lender quotes you a low rate but a higher APR.
- Loan amount: $300,000, term: 30 years
- Interest rate: 6.75%
- APR: 7.05%
- Upfront fees: $5,000
- This tool explains how fees widen the gap between rate and APR.
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