APR Calculator
Find the annual percentage rate that includes loan fees and closing costs, not just the nominal rate.
Runs 100% in your browser — nothing is uploaded.
Result
Formula
APR is the internal rate that reproduces the payment from the amount net of fees.
About this calculator
The APR Calculator determines the true annual cost of a loan by incorporating fees and closing costs into the interest rate, giving a more accurate comparison of loan offers than the nominal rate alone. First, the monthly payment is computed using the nominal annual rate divided by 12 and the loan term in months.
How to use
- 1
Enter the loan amount, nominal annual rate, and term in years.
- 2
Optionally add any fees and closing costs you'll pay.
- 3
Click Calculate to see your monthly payment and true APR.
Frequently asked questions
What is the difference between APR and nominal interest rate?
The nominal rate is the stated interest rate on the loan. APR includes fees and other costs, giving a more complete picture of the true cost of borrowing.
Why is APR higher than the nominal rate?
Because APR accounts for fees and closing costs that are deducted from the loan amount, effectively increasing the interest rate you pay.
Can APR be lower than the nominal rate?
In some cases, if the lender pays certain fees or if the loan has negative points, APR could be lower, but typically APR is higher or equal.
Please note: Results are estimates for general information only and are not professional or medical/financial advice.