Loans

APR Calculator

Two loans at the same interest rate can cost very different amounts once fees and points are counted. APR (annual percentage rate) rolls those upfront costs into a single annual number, so it's the fairest way to compare offers. Enter the loan, its note rate, and the fees to see the APR they really add up to.

Tested against worked examplesHow we verify

Loan amount

Interest rate (note rate)

Loan term

30 or 15 years for mortgages; 3–7 for auto and personal loans.

Upfront fees & points

Origination, points, and other lender fees rolled into the loan.

Effective APR

6.66%

The true annual cost once fees are counted.

Note (interest) rate: 6.5%
APR above the note rate: 0.16%
Monthly payment: $1,580
Upfront fees: $4,000

Compare scenariosTry three values of one input

Vary

APR Calculator results for three values of Loan amount
Loan amount
Effective APR	6.67%	6.66%−0.02%	6.64%−0.03%
APR above the note rate	0.17%	0.16%−0.02%	0.14%−0.03%
Monthly payment	$1,422	$1,580+$158	$1,738+$316

Every other input stays at the value you set above — currently $250,000 for loan amount. Differences are measured against the first column.

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Saved in this browser only — no account, and nothing is sent to us. Clearing your browser data deletes them.

How this calculator works

The monthly payment is computed from the note rate over the term. APR is the annual rate at which the present value of those payments equals the loan minus upfront fees — solved numerically. When fees are zero, APR equals the note rate exactly.

This models fees deducted upfront (or financed) against a fixed-rate, fully-amortizing loan. It doesn't capture every lender's exact APR conventions (which fees are included can vary), variable rates, or prepayment — use your official Loan Estimate's APR as the final word when comparing.

What this assumes

APR spreads fees and points across the full stated term. On a loan you repay or refinance early, the effective cost is higher than the APR suggests.
It excludes compounding within the year, so a credit card's true annual cost exceeds its quoted APR.
Only fees the lender includes are captured; third-party costs vary by what a given lender chooses to bundle.

What changes this number

Fees and points: The entire difference between the note rate and the APR. A zero-fee loan has an APR equal to its rate.
Holding period: Shorter holding raises the effective cost, because the fees are amortised over fewer months than APR assumes.
Loan term: A longer term dilutes fixed fees across more payments, which flatters the APR of long loans.

A worked example

Take the $250k mortgage, $4k fees scenario. These figures are produced by the calculator above, not written alongside it, so they always match what the tool returns.

What you enter

Loan amount: $250,000
Interest rate (note rate): 6.5%
Loan term: 30 years
Upfront fees & points: $4,000

What it returns

Effective APR: 6.66%
Note (interest) rate: 6.5%
APR above the note rate: 0.16%
Monthly payment: $1,580
Upfront fees: $4,000

Try an example

$250k mortgage, $4k fees Buying points (higher fees)$30k auto loan, low fees

Frequently asked questions

What's the difference between APR and interest rate?

The interest rate (or "note rate") is what your monthly payment is calculated from. APR is broader: it folds in upfront fees and points and expresses the total as one annual percentage. APR is always equal to or higher than the note rate — the gap is the cost of the fees.

Why is APR higher than my interest rate?

Because you pay fees to get the loan but only receive the loan minus those fees, your effective borrowing cost is higher than the headline rate. APR spreads those upfront costs across the life of the loan and restates them as an annual rate. No fees means APR equals the note rate exactly.

Should I compare loans by APR or interest rate?

APR — that's exactly what it's for, and lenders are required to disclose it. But there's a catch: APR assumes you keep the loan for its full term. If you'll sell or refinance in a few years, a low-rate/high-fee loan may cost more in practice than its APR suggests, since you never recoup the upfront fees.

What counts as a fee in the APR?

Lender charges tied to the loan: origination fees, discount points, underwriting, and often mortgage insurance. Third-party costs like appraisal or title can be included too. Enter your total upfront lender fees and points here to see the APR they produce.