APR Calculator
Enter a positive loan amount and term, non-negative rate and fees, and fees smaller than the loan amount.
APR spreads your fees and points across the loan term to show the true annualized cost of borrowing — it's always equal to or higher than the nominal interest rate, and it's the number to use when comparing loan offers with different fee structures.
Free APR calculator that spreads your fees and points across the loan term to reveal the true annualized borrowing cost — the number that actually lets you compare loan offers fairly.
How it works
- Enter loan amount, nominal interest rate, term, and total fees/points
- The calculator solves for the rate that produces the same payment on the fee-reduced amount
- See your APR next to the nominal rate — the gap shows the real cost of the fees
Frequently asked questions
Why is APR always higher than the interest rate?
APR folds fees and points into the cost of borrowing and spreads them over the loan term as if they were extra interest. Since fees add real cost without reducing what you owe, APR is always equal to or greater than the nominal rate.
Should I compare loans by rate or APR?
APR, when comparing loans with different fee structures — a lower rate with high fees can cost more than a slightly higher rate with low fees over the same term. APR normalizes both into one comparable number.
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From the blog
Update history
- 2026-09-01 Added: a cover image (a loan document with a magnifying glass revealing a higher hidden percentage behind the advertised rate) — used as the card thumbnail, social share image, and blog title image.
- 2026-09-01 Launched: APR calculator that spreads fees and points across the loan term to show the true annualized cost, distinct from the nominal rate. Entirely client-side, reuses the bisection rate-solving engine.