IncomeChecker.com

APR Calculator

See what a loan really costs. Enter the loan amount, interest rate, term, and the fees you pay upfront, and get the APR, the monthly payment, and the total finance charge.

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%
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Paid at closing, not financed

APR
6.70%
Monthly payment
$1,580.17
Total finance charge
$323,861
Interest plus fees

How APR is found

  • Monthly payment is set by the stated interest rate on the full loan amount
  • The amount you actually receive = loan amount − upfront fees
  • APR is the annual rate at which the payments repay the amount you actually receive

Example. A $250,000 loan at 6.5% for 30 years has a payment of $1,580.17. With $5,000 of upfront fees you receive $245,000 for the same payments, which makes the APR 6.70%. The finance charge, interest plus fees, is $323,861.

Things to check

  • APR includes the interest rate plus certain fees, so it is higher than the rate when you pay fees. It lets you compare loans with different fees.
  • Which fees count in a lender’s official APR is set by law and can differ from the number here. Use this for comparing; the lender’s disclosed APR is the one on your Loan Estimate.
  • APR assumes you keep the loan to the end. If you plan to sell or refinance sooner, upfront fees weigh more heavily than the APR suggests.

Frequently asked questions

What is APR?

Annual percentage rate. It expresses the cost of a loan as a yearly rate and includes certain fees as well as interest, so it is usually higher than the interest rate.

Why is my APR higher than my interest rate?

Because upfront fees reduce the money you actually receive while the payments stay the same. The more fees, the bigger the gap.

Is a lower APR always better?

For comparing loans of the same length, usually yes. But a loan with higher fees and a lower rate can cost more if you sell or refinance early.

More free lending tools

Calculators give estimates from the numbers you enter. They are not tax, legal, or accounting advice.