About the APR Calculator
The annual percentage rate, or APR, is the yearly cost of a loan including the interest and the fees you pay to get it. Enter the loan amount, the monthly payment, the number of payments and any upfront fees, and this calculator finds both the stated interest rate your payment implies and the higher APR once fees are counted. It also shows total interest, fees and the total cost of borrowing. It assumes equal monthly payments with monthly compounding, which is how APR is usually quoted on car, personal and many other instalment loans.
Updated October 2026
How to use the APR Calculator
- 1Enter the loan amount shown on the contract.
- 2Enter the monthly payment and the number of monthly payments.
- 3Add any upfront fees, such as origination or processing charges.
- 4Read the APR and compare it with the stated interest rate.
- 5Press Copy result to keep the figures.
Why APR is the number to compare
Two loans can advertise the same interest rate and cost very different amounts once fees are added. APR rolls the fees into one yearly figure so offers can be compared fairly. When you are choosing between lenders, comparing APR with the same term is the quickest way to see which loan is actually cheaper.
What the results show
- Stated rate: the interest rate your payment implies on the full loan amount
- APR: the rate once the fees are treated as part of the cost
- Total interest: all payments added up minus the loan amount
- Total cost of borrowing: interest plus fees
Checking an offer
Use the numbers from the loan agreement: the amount, the monthly payment, the number of payments and every fee that is charged at the start. If the APR you calculate is much higher than the lender states, ask which fees they excluded. Optional insurance or add-ons are usually not part of APR, so confirm what is included.
Related tools
The Loan Calculator finds a payment from a known rate, the Auto Loan Calculator handles car purchases, and the Amortization Calculator shows how each payment splits between interest and principal. The Compound Interest Calculator and Debt Payoff Calculator help once you are repaying.
Features
- APR from amount, payment, term and fees
- Stated interest rate shown for comparison
- Extra cost caused by fees, in percentage points
- Total interest, fees and total cost of borrowing
- Clear message when the numbers cannot work
- Currency symbol picker
- Runs in your browser
Frequently asked questions
What is APR?
APR stands for annual percentage rate. It expresses the yearly cost of a loan as a percentage and, unlike the plain interest rate, it includes most upfront fees. That makes it better for comparing offers that have different fees.
What is the difference between APR and interest rate?
The interest rate is only the cost of borrowing the money. APR adds fees such as origination charges, spread over the life of the loan. A loan with a 6 percent rate and a 300 fee can have an APR above 6 percent, as the calculator shows.
How do I calculate APR from a payment?
Take the amount you actually receive, which is the loan amount minus the upfront fees, and find the rate at which your monthly payments would repay exactly that sum over the term. There is no simple formula, so the calculator searches for the rate numerically.
Why is my APR higher than the rate my lender quoted?
Fees explain the gap. If you pay a fee out of the loan proceeds, you receive less than you owe, so the effective cost goes up. The row labelled extra cost from fees shows how many percentage points the fees added.
Does the APR here match the one on my loan documents?
It should be close for ordinary instalment loans with equal monthly payments. Lenders follow national rules about which fees count, so the disclosed APR on your documents is the official figure. Use this tool to check and to compare offers.
Can I use it for credit cards or mortgages?
It suits fixed instalment loans. Credit card APRs are applied to a changing balance and do not have a fixed payment, and adjustable mortgages can change over time. For those, use a calculator made for that product.