# APR Calculator

URL: https://speedycalculator.com/calculators/finance/apr/
Last updated: 2026-10-25

> The APR calculator works out the true annual percentage rate of a loan once fees are included – fees financed into the loan and fees paid upfront – plus the effective annual rate (EAR), the payment and the total cost.

## Inputs

- Loan amount
- Interest rate (%)
- Loan term (years, months)
- Compounding frequency
- Payment frequency
- Fees financed into the loan
- Fees paid upfront

## Results

- Number of payments
- Payment per period
- Total interest
- Total fees
- Effective annual rate (EAR) of the interest rate
- Real APR (with fees)
- Effective APR

## Formula

```
Payment = pmt(rate per period, n, loan + financed fees)
APR = periodic rate i that solves (loan − upfront fees) = payment × (1 − (1 + i)^−n) ÷ i, × payments per year
Effective APR = (1 + APR ÷ p)^p − 1
```

## Explanation

Under the U.S. Truth in Lending Act lenders must disclose the APR so borrowers can compare offers. A loan with a lower interest rate but high fees can have a higher APR – and the APR assumes you keep the loan for the full term.

### How to use the APR Calculator

- **Loan amount**
- **Interest rate**
- **Loan term**
- **Compounding frequency**
- **Payment frequency**
- **Fees financed into the loan**
- **Fees paid upfront**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter the loan amount, interest rate, term, compounding, payment frequency, fees added to the loan and fees paid upfront.

### Tips

- Compare loans by APR and total cost, not just the monthly payment.
- Extra payments go straight to principal and can save a lot of interest.
- Pay off the highest-rate debt first if you want to save the most money.
- Check for prepayment penalties before paying a loan off early.

### Common mistakes to avoid

- Stretching a loan term to lower the payment without seeing the extra interest.
- Paying only the minimum on credit cards.
- Forgetting fees that are rolled into the loan.

### Inputs explained

FieldWhat to enterLoan amountAmount in your currencyInterest rateIn %Loan termUnits: years, monthsCompounding frequencyChoose one: Yearly, Semi-annually, Quarterly, Monthly …Payment frequencyChoose one: Monthly, Semi-monthly, Bi-weekly, Weekly …Fees financed into the loanAmount in your currencyFees paid upfrontAmount in your currency

### What each result means

- **Number of payments** = round([Loan term]×[Payment frequency])
- **Payment per period** = pmt([Rate per payment], [Number of payments], [Loan amount] + [Fees financed into the loan])
- **Total interest** = [Payment per period]×[Number of payments] - [Loan amount] - [Fees financed into the loan]
- **Total fees** = [Fees financed into the loan] + [Fees paid upfront]
- **Effective annual rate (EAR) of the interest rate** = ((1 + [Rate per payment])^[Payment frequency] - 1)×100
- **Real APR (with fees)** = rate([Number of payments], 0 - [Payment per period], [Loan amount] - [Fees paid upfront])×[Payment frequency]×100
- **Effective APR** = ((1 + rate([Number of payments], 0 - [Payment per period], [Loan amount] - [Fees paid upfront]))^[Payment frequency] - 1)×100

### Example values

How the main result changes when **Loan amount** changes and everything else stays at the example values above:

Loan amountPayment per period50,000571.7675,000849.31100,0001,126.86125,0001,404.41150,0001,681.96200,0002,237.06

## Worked example

Inputs — Loan amount: $100,000; Interest rate: 6 %; Loan term: 10 years; Compounding frequency: Monthly; Payment frequency: Monthly; Fees financed into the loan: $1,500; Fees paid upfront: $500.

Results — Number of payments = 120; **Payment per period = $1,126.86**; Total interest = $33,722.97; Total fees = $2,000.00; Effective annual rate (EAR) of the interest rate = 6.168 %; Real APR (with fees) = 6.442 %; Effective APR = 6.635 %.

## FAQ

**What is the difference between APR and interest rate?**
APR includes fees; the interest rate doesn't.

**What fees are included in APR?**
Origination fees, points, mortgage broker fees and some closing costs.

**Is a lower APR always better?**
Usually, if you keep the loan for its full term.

**What formula does the APR Calculator use?**
Payment = pmt(rate per period, n, loan + financed fees).


## Sources

- [Consumer Financial Protection Bureau](https://www.consumerfinance.gov/)