APR Calculator
Find the true yearly cost of your loan, accounting for nominal interest rate, lender fees, points, and other closing costs.
Nominal Rate: 6%
Loan Specifications
The Annual Percentage Rate (APR) represents the true cost of borrowing. It factors in nominal interest plus loan fees, broker points, and mandatory mortgage insurance, which is why it exceeds the stated nominal rate.
How APR Calculator Works
When borrowing money, whether for a home, car, or personal expense, the interest rate represents only a portion of the actual cost. Lenders routinely add origination fees, closing costs, administrative fees, and discount points that increase the total amount you pay back.
Our calculator helps you easily audit these figures.
Enter Loan Details
Input the main loan principal amount, standard interest rate, and target amortization term.
Add Upfront Fees
Include any loan closing costs, document preparation costs, origination fees, and discount points.
Calculate True APR
Instantly solve for the actual APR that reflects the total cost of credit annualized.
Why Calculate True APR?
Knowing the exact APR protects you from predatory borrowing by presenting the real cost of debt in a single benchmark. This is extremely critical when comparing multiple lender options.
Interest Rate vs APR
Interest rate only measures interest charges, while APR factors in both interest and lender service fees.
Mortgage APR Breakdown
Understand the real impact of discount points, mortgage broker fees, and loan processing fees over the years.
Auto Loan APR Comparison
Audit auto loans easily by comparing the dealer's rate against your credit union's terms side-by-side.
Points and Closing Costs
See if paying upfront points to reduce your interest rate actually makes financial sense.
Frequently Asked Questions About APR
Frequently Asked Questions
Below are the most common inquiries regarding loan APR formulas and TILA regulations.