APR Calculator
Calculate the true Annual Percentage Rate (APR) of a loan including fees. Compare APR vs stated interest rate.
Origination, closing costs, points, etc.
True APR
6.05%
vs 5% stated rate
Monthly Payment
$377.42
Total Interest
$2,645.48
Loan Amount$20,000.00
Fees−$500.00
Actually Received$19,500.00
Total Repaid$22,645.48
True Cost (Interest + Fees)$3,145.48
Frequently Asked Questions
What is APR?+
APR (Annual Percentage Rate) is the true yearly cost of a loan including interest and fees. It's always higher than the stated interest rate when there are fees. A 5% loan with $500 in fees on $20K has an APR of ~5.53%.
Why is APR different from interest rate?+
APR includes all loan costs (origination fees, closing costs, points) spread over the loan term. A loan with a lower interest rate but high fees might have a higher APR than one with a slightly higher rate but no fees.
Should I compare APR or interest rate?+
Compare APR for the truest cost comparison between loans. It accounts for fees that the interest rate alone ignores. However, for adjustable-rate loans, the initial APR may not reflect the long-term cost.