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.
30 or 15 years for mortgages; 3–7 for auto and personal loans.
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
How much the fees add to your true annual cost.
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.
Try an example
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.
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Disclaimer: DayCents provides this calculator for educational purposes only. Results are estimates based on your inputs and the stated assumptions — they are not financial advice, a quote, or an offer of credit. Consult a qualified financial professional before making major money decisions.