APR Calculator
Calculate fee-adjusted annual percentage rates for general loans and mortgages.
Find the annualized periodic rate that equates net loan proceeds with borrower payments.
Result
APR is the nominal annualized cash-flow yield; effective annual APR is also shown. Insurance duration is entered explicitly.
How to use this calculator
Find the annualized periodic rate that equates net loan proceeds with borrower payments. Enter amounts in the units shown, select the applicable options, and click Calculate. Use Reset to restore the starting values.
Calculation formula
Net proceeds = Σ paymentₜ/(1+APR/f)^t.
Assumptions and accuracy
Review timing, rates, fees and result notes when comparing scenarios. Future returns and rates are assumptions rather than guaranteed outcomes. Monetary display follows the currency’s precision; intermediate calculations retain additional digits.
Choose what to calculate
Loan APR calculator with fees
Calculate an annualized borrowing cost from loan payments and selected fees. APR and the quoted interest rate measure different costs.
Related searches: Loan apr calculator
Open this calculationUnderstanding this calculation
Compare a loan's stated interest rate with its cash-flow APR after fees. The APR calculation relates actual proceeds received to scheduled payments rather than treating every fee as an interest-rate percentage.
Worked examples
APR on a loan with no interest or fees
Illustrative inputs are specified in the steps below; the example link loads the complete settings. Unmentioned settings use the linked defaults.
- Net proceeds are 12,000 and twelve payments are 1,000 each. Total repayment equals proceeds, so the cash-flow APR is 0%.
Nominal APR: 0%.
Try these inputsCommon questions
Why can APR be higher than the interest rate?
Fees can reduce net proceeds or increase financed debt without reducing scheduled payments. That raises the implied cost of borrowing.
Are APR and effective annual rate identical?
Not generally. Nominal APR and effective annual APR use different annualization conventions; read the result labels before comparing offers.
Scope and assumptions
The modeled APR is a mathematical estimate. Legal disclosure APR depends on which charges must be included and the applicable rules.
Sources
- Calculation methodology, rule versions and testing limitations
- Reference calculator for feature comparison (not a model-parity certification)
Calculation notes checked . Examples are mathematical checks under the stated assumptions.
Calculation methods and formulas
General Loan APR
Find the annualized periodic rate that equates net loan proceeds with borrower payments.
Net proceeds = Σ paymentₜ/(1+APR/f)^t.
Mortgage APR
Find the annualized periodic rate that equates net loan proceeds with borrower payments.
Net proceeds = Σ paymentₜ/(1+APR/f)^t.
See our calculation methodology and review status for data versions, rounding and validation limitations.