CalcArcade.

APR Calculator

Enter the loan amount, the interest rate, the term and the upfront fees. You get the APR, the monthly payment, the amount you receive and the finance charge.

Your numbers

Result

Estimate for information only, not professional advice. Last reviewed .

How we calculate it

The monthly payment is worked out on the full loan amount at the stated interest rate. The fees are taken from what you receive, so you get the amount minus the fees. The APR is the yearly rate at which those monthly payments are worth exactly the money you received, found by repeated halving (the actuarial method).

For example, a 200,000 loan at 6% over 30 years has a payment of 1,199.10. With 4,000 of fees you receive 196,000, and the APR comes out above 6%. With no fees the APR is the same as the rate. The finance charge is the total of the payments minus the money you received.

Assumptions and limits

  • Only the fees you enter are counted. The fees that must be included in an official APR depend on the type of loan and the country, so use this to compare offers and not as the legal figure.
  • This is for a fixed rate loan with equal monthly payments. Adjustable rates and interest-only periods are not covered.
  • The APR here is the nominal yearly rate (the monthly rate times 12).

Frequently asked questions

What is the difference between interest rate and APR?

The interest rate sets the payment. The APR also counts the upfront fees, so it shows the real yearly cost of borrowing and is almost always higher than the rate.

Why is my APR higher than the rate?

The fees reduce the money you actually receive, but the payments still repay the full amount. That makes the cost per year of the money you got higher than the stated rate.

What is a finance charge?

The finance charge is the total cost of borrowing in money: all the payments added up minus the money you received. It includes the interest and the upfront fees.

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Worked example (a fixed example using the starting numbers, it does not change as you type)

Inputs: Loan amount = 200000; Interest rate (%) = 6; Loan term (years) = 30; Upfront fees = 4000.

  • APR 6.19%
  • Monthly payment $1,199.10
  • Amount received after fees $196,000.00
  • Finance charge $235,676.38
  • Total of payments $431,676.38

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Last reviewed: . Formulas and assumptions are described on our methodology page. For information only; not professional advice.