Financial Calculators
APR Calculator
Work out the effective annual percentage rate of a loan once origination fees and other upfront costs are included.
Quick guide
Enter the loan amount, upfront fees, the nominal interest rate, and the term. The calculator folds the fees into the cost of borrowing to give the effective APR, which is higher than the nominal rate whenever fees are charged.
Read the full explanationHow It Works
APR expresses the true yearly cost of borrowing by folding upfront fees into the rate. Because you pay interest on the full loan but receive less after fees, the APR is higher than the nominal rate.
Formula Used
Solve r in: (Amount − Fees) = Payment × (1 − (1 + r)^(−n)) ÷ r, then APR = 12r.
Example Calculation
A $15,000 loan with $500 in fees at 8% for 5 years pays about $304 per month, but the effective APR is roughly 9.4%.
Practical Use Cases
- Compare loan offers with different fee structures.
- Reveal the real cost of “low rate, high fee” deals.
- Check lender APR disclosures.