How to use APR Calculator
- Enter loan amount, interest rate, term, and fees/points.
- Calculate estimated APR.
- Compare against other loan offers using the same fee assumptions.
Worked examples
Concrete numbers and cases you can check against the tool above.
$20,000 loan at 6% with $800 of fees
You receive $19,200 but repay as if the principal were $20,000. Estimated APR is higher than 6% because fees are part of the cost of credit. Two offers with the same rate but different origination fees will not have the same APR β compare APR, not the teaser rate.
When to use APR Calculator
Stated interest rate ignores fees and points that change true yearly cost. Estimating APR helps compare loan offers more fairly.
Common use cases
- Compare two mortgages with different fee structures.
- See how points affect estimated APR.
- Educate borrowers on rate vs APR differences.
- Sanity-check a dealer financing quote.
Inputs and outputs
- Loan amount, stated rate, fees, points, term
Privacy
This tool runs entirely in your browser. Your data never leaves your device β nothing is uploaded to our servers.
Frequently asked questions
- How is APR different from interest rate?
- APR aims to include certain financing costs so the yearly cost is more comparable across offers.
- Is this lender-official APR?
- No. Lenders follow regulatory formulas that may differ. Use this as an educational estimate.
- Do you store loan data?
- No.