APR Calculator
Find the true APR of a fixed-rate loan once upfront fees are counted. Enter the loan amount, interest rate (or monthly payment), term and fees.
Last updated: October 2026
APR
8.71 %
This calculator gives an estimate for general information only. It is not financial, tax or investment advice. Check the figures with a qualified professional before making decisions, and follow the rules that apply where you live.
Formula below · 1 source (CFPB) · Updated Oct 2026
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About this calculator
A loan's interest rate covers interest only. Its APR (annual percentage rate) also counts upfront finance charges such as origination fees and points, so you can compare offers on one number. U.S. lenders must disclose it under the Truth in Lending Act (Regulation Z).
How it works
1. Monthly payment. If you enter an interest rate, the payment is the standard amortizing payment on the full loan amount. If you enter the payment directly, that value is used. 2. Amount financed = loan amount − upfront fees. That is the money you actually receive. 3. The APR is 12 × i, where i is the monthly rate at which the payments repay exactly the amount financed: amount financed = payment × (1 − (1 + i)^−n) ÷ i.
The last equation has no closed-form answer, so the calculator solves it numerically. This is the actuarial method in Regulation Z, Appendix J, for a loan with equal monthly payments.
With the defaults, you borrow $10,000, pay a $300 fee, and repay $200 a month for 60 months. You receive only $9,700, so the APR is 8.71%, against a 7.42% rate on the same payments without the fee. If you know the rate instead: $10,000 at 8% for 60 months is $202.76 a month, and with the $300 fee the APR is 9.30%.
The same fee matters more on a shorter loan, because it is spread over fewer payments. Your lender's disclosure can differ slightly if the first payment period is longer or shorter than a month, or if they count different fees as finance charges. This is an estimate, not financial advice.
APR on a $10,000 loan by interest rate, term and upfront fee
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| Interest rate | Fee | APR, 36 months | APR, 60 months |
|---|---|---|---|
| 6% | 1% ($100) | 6.68% | 6.42% |
| 6% | 3% ($300) | 8.06% | 7.27% |
| 6% | 5% ($500) | 9.48% | 8.15% |
| 10% | 1% ($100) | 10.69% | 10.43% |
| 10% | 3% ($300) | 12.11% | 11.32% |
| 10% | 5% ($500) | 13.56% | 12.24% |
| 15% | 1% ($100) | 15.71% | 15.46% |
| 15% | 3% ($300) | 17.17% | 16.39% |
| 15% | 5% ($500) | 18.67% | 17.35% |
How to use
Choose whether you know the interest rate or the monthly payment. Enter the loan amount, that rate or payment, the term in months, and the fees that are taken out of the loan or paid to get it. Example 1 (defaults): $10,000 borrowed, $200 a month for 60 months, $300 fee. APR: 8.71%. With the fee set to 0, the same payments correspond to a 7.42% rate, so the fee adds about 1.3 points. Example 2: you know the rate. Choose Interest rate: $10,000 at 8% for 60 months with a $300 origination fee. Payment: $202.76. APR: 9.30%. Example 3: choose Interest rate for a $300,000, 30-year mortgage at 6.5% with $6,000 in points and lender fees (term 360). Payment: $1,896.20. APR: 6.70%. The fee adds only 0.2 points because it is spread over 30 years.
Frequently asked questions
How is APR different from the interest rate?
The interest rate is the yearly cost of borrowing before fees. The APR folds in upfront finance charges as well, so it is usually higher. A wide gap between the two signals a loan with high fees.
Which fees should I include?
Include charges you pay to get the loan: origination or application fees, discount points, and similar lender charges. For mortgages, Regulation Z leaves out certain third-party costs such as appraisal and title fees. Fees you would pay in a cash purchase, such as sales tax, are not finance charges.
Why does a fee raise the APR more on a short loan?
The APR spreads the fee over the life of the loan. A $300 fee on a 5-year loan adds about 1.3 points to the APR; the same share of fees on a 30-year mortgage adds only a few tenths of a point. On a 6-month loan, a large fee can push the APR above 100%.
Is this the exact APR my lender will disclose?
It uses the same equation for a loan with equal monthly payments and fees paid at the start, so it should match closely. Small differences can come from an irregular first payment period, a final payment that differs from the others, or which fees the lender counts as finance charges.
Is the lower APR always the better deal?
Over the full term, yes. If you expect to pay the loan off or refinance early, a loan with a low rate and high upfront fees can cost more than its APR suggests, because you pay all the fees but keep the loan only briefly.
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