# Mortgage Rate Calculator (APR)

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

> The mortgage rate calculator works out the monthly payment for a fixed-rate mortgage at a given rate, points and fees – and the effective rate (APR) that includes them, so you can compare offers fairly.

## Inputs

- Loan balance
- Mortgage term (years, months)
- Mortgage rate (%)
- Mortgage points (% of loan) (%)
- Up-front fees
- Annual fee

## Results

- Monthly payment
- Adjusted mortgage rate (APR)
- Paid interest
- Total payments (incl. points and fees)

## Formula

```
Monthly payment = pmt(rate ÷ 12, months, balance)
APR = rate i such that balance − points − fees = Σ payments ÷ (1 + i/12)^k
Annual fees are added to the effective cost
```

## Explanation

Lenders quote both the note rate and the APR. A loan with a lower rate but more points and fees can have a higher APR. The APR assumes you keep the loan for the full term.

### How to use the Mortgage Rate Calculator

- **Loan balance**
- **Mortgage term**
- **Mortgage rate**
- **Mortgage points (% of loan)**
- **Up-front fees**
- **Annual fee**

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

### How it works

Enter the loan balance, term, rate, points, up-front fees and any annual fee.

### Tips

- Get a written loan estimate and compare the APR, not just the interest rate.
- Include property tax, insurance, HOA fees and maintenance in your monthly budget.
- A larger down payment lowers the payment and can remove mortgage insurance.
- Rates change daily – use a current quote for the most accurate result.

### Common mistakes to avoid

- Looking only at the monthly payment instead of the total cost of the loan.
- Forgetting closing costs and fees.
- Assuming home prices always rise.

### Inputs explained

FieldWhat to enterLoan balanceAmount in your currencyMortgage termUnits: years, monthsMortgage rateIn %Mortgage points (% of loan)In %Up-front feesAmount in your currencyAnnual feeAmount in your currency

### What each result means

- **Monthly payment** = pmt([Mortgage rate]÷1200, [Mortgage term], [Loan balance])
- **Adjusted mortgage rate (APR)** = rate([Mortgage term], 0 - [Monthly payment] - [Annual fee]÷12, [Loan balance] - [Loan balance]×[Mortgage points (% of loan)]÷100 - [Up-front fees])×1200
- **Paid interest** = [Monthly payment]×[Mortgage term] - [Loan balance]
- **Total payments (incl. points and fees)** = [Monthly payment]×[Mortgage term] + [Loan balance]×[Mortgage points (% of loan)]÷100 + [Up-front fees] + [Annual fee]×[Mortgage term]÷12

### Example values

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

Loan balanceMonthly payment175,0001,106.12262,5001,659.18350,0002,212.24437,5002,765.3525,0003,318.36700,0004,424.48

## Worked example

Inputs — Loan balance: $350,000; Mortgage term: 30 years; Mortgage rate: 6.5 %; Mortgage points (% of loan): 1 %; Up-front fees: $4,000; Annual fee: $0.

Results — **Monthly payment = $2,212.24**; Adjusted mortgage rate (APR) = 6.71 %; Paid interest = $446,405.71; Total payments (incl. points and fees) = $803,905.71.

## FAQ

**What is the difference between the mortgage rate and APR?**
APR includes points and fees, spread over the loan term.

**Why does the APR assume the full term?**
It's a standard measure; if you sell early, fees cost more per year.

**What is a good mortgage rate?**
Compare with current averages for your credit score and loan type.

**What formula does the Mortgage Rate Calculator use?**
Monthly payment = pmt(rate ÷ 12, months, balance).


## Sources

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