Calculate the true Annual Percentage Rate (APR) of a loan including all fees, points, and charges. APR reveals the real cost of borrowing — always higher than the stated interest rate.
Loan Details
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%
💰 Fees & Points
$
points
1 point = 1% of loan amount
$
$
True APR
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APR Premium
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Stated Rate
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True APR
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Monthly Payment
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Total Fees
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Loan Amount
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Stated Interest Rate
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Monthly Payment (rate only)
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Origination Fee
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Discount Points Cost
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Other Fees
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Total Financed Fees
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Effective Loan (amount − fees)
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True APR
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Total Interest (over loan term)
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💡 Tip: By law, lenders must disclose APR on all loan offers. Always compare APR — not just the stated interest rate — when shopping for loans.
FAQ
What is APR?
APR (Annual Percentage Rate) is the true annual cost of borrowing, including the interest rate plus all mandatory fees, points, and charges. It gives you a standardized way to compare loan offers from different lenders.
How is APR calculated?
APR is calculated by finding the interest rate that makes the present value of all loan payments equal to the net loan proceeds (loan amount minus fees). It is higher than the stated rate when fees are included.
What is the difference between APR and interest rate?
The stated interest rate only reflects the cost of the money you borrow. APR includes the interest rate plus fees (origination, points, broker fees), making it a more complete measure of loan cost.
Is a lower APR always better?
Yes, a lower APR means lower total cost of borrowing. However, if you plan to pay off the loan early (refinance or sell), a loan with higher APR but lower upfront fees may be cheaper overall.