APR Calculator
Fold origination fees, points, and closing costs into the annual percentage rate on a loan, alongside the monthly payment and total cost.
Loan details
Upfront costs
Calculated in your browser as you type. Nothing is uploaded.
APR folds the upfront costs into a single yearly rate by assuming they reduce the amount you actually receive while your payments stay based on the full loan amount. It excludes costs that are not finance charges, such as appraisal or title fees your lender does not count toward APR.
How to calculate a loan’s APR
Enter the loan amount, rate, and term
Type the amount borrowed, the nominal interest rate, and the term, choosing years or months.
Add the upfront costs
Enter the origination fee as a cash amount or a percent, any points, and other closing costs.
Read the APR
The result updates instantly and shows the APR alongside the monthly payment, the effective amount financed, and the gap versus the nominal rate.
Compare the total cost
Check total interest and total cost of the loan to see the full price of borrowing once every upfront cost is included.
Why use this tool
Fees folded into one rate
Origination fees, points, and other closing costs are combined and solved into a single annual percentage rate alongside the nominal interest rate.
Origination fee as cash or percent
Enter the origination fee as a flat amount or as a percent of the loan, whichever matches the paperwork in front of you.
Effective amount financed
See the amount you actually receive once upfront costs are subtracted, since your payments are still based on the full loan amount.
Nominal rate vs APR gap
A dedicated readout shows exactly how many percentage points the upfront costs add on top of the headline interest rate.
Full cost breakdown
Monthly payment, total interest, and total cost of the loan are all shown together so the full price of borrowing is visible at a glance.
Private by design
Every figure you enter is calculated in your browser. Nothing is uploaded or stored.
About this tool
The nominal interest rate on a loan only tells part of the story: origination fees, points, and closing costs all add to the real cost of borrowing without changing the headline rate. The annual percentage rate is designed to capture that full cost as a single yearly figure, by treating the upfront costs as if they reduce the amount you actually receive while your payments stay based on the full loan amount. This tool solves for that rate numerically, since there is no simple formula that isolates it directly.
Enter the loan amount, nominal rate, and term, then add the origination fee as either a cash amount or a percent of the loan, any points, and other closing costs. The effective amount financed, the amount left once those costs are subtracted, is what the monthly payment stream is measured against to find the APR. The gap between the nominal rate and the resulting APR shows plainly how much the fees are adding, and the total cost of the loan adds the upfront costs to every payment made over the full term.
Everything runs in your browser, so the figures you enter are never uploaded or stored. To work out the payment and full amortization schedule on a loan without folding in fees, use the loan calculator; for a mortgage payment including property tax and insurance, use the mortgage calculator.
Frequently asked questions
- What is the difference between APR and the interest rate?
- The interest rate is used to calculate the monthly payment on the loan amount. APR folds in the upfront costs, such as origination fees, points, and closing costs, by measuring the payment stream against the amount you actually receive rather than the full loan amount, which produces a higher yearly figure whenever fees are present.
- How is the APR calculated?
- The monthly payment is worked out from the loan amount and nominal rate as usual. Then the tool searches for the rate at which the present value of that payment stream equals the loan amount minus the upfront costs, narrowing in on the answer with a capped number of steps.
- What counts as an upfront cost here?
- The tool includes the origination fee, points, and any other closing costs you enter as a single flat amount. Real loan disclosures sometimes exclude certain fees, such as appraisal or recording costs, from the official APR, so treat this as an estimate against your own numbers rather than a substitute for the lender’s disclosure.
- What does the effective amount financed mean?
- It is the loan amount minus the upfront costs, representing the cash you effectively receive even though your monthly payments are still calculated on the full loan amount. A larger gap between the loan amount and this figure produces a bigger difference between the nominal rate and the APR.
- Are the figures I enter kept private?
- Yes. The whole calculation runs in your browser. The loan amount, rate, term, and every fee you enter are never uploaded, stored, or logged.
Related tools
Average Calculator
Paste a list of numbers and get the mean, median, mode, range, and standard deviation instantly, updated as you type.
Blood Alcohol Content Calculator
Estimate your blood alcohol content from your sex, body weight, how much you drank, and how long ago you started. An estimate, never a measurement.
BMI Calculator
Work out body mass index from height and weight, in metric or imperial, with the WHO adult category and a healthy weight range for your height.
BMR Calculator
Estimate your basal metabolic rate from sex, age, height, and weight, comparing the Mifflin-St Jeor and Harris-Benedict equations, with an optional daily calorie estimate.
Board Foot Calculator
Work out board feet and cost from a board thickness, width, and length in feet or inches, across several board sizes, with cubic feet and cubic meters totals.
Body Fat Calculator
Estimate your body fat percentage from tape measurements using the U.S. Navy method, then see your fat mass and lean mass. Metric or imperial, updated as you type.