APR Calculator

Interest rate vs APR: the stated (note) interest rate only sets how much interest is charged on the balance. The annual percentage rate (APR) also reflects certain upfront fees, so it shows the yearly cost of borrowing as a single rate. If there are no fees, the two are the same.

The monthly payment is calculated on the full loan amount at the stated interest rate — fees don't change the payment here because they are paid upfront or deducted from the money you receive.

Because fees reduce the cash you actually receive, the calculator finds the rate at which those same payments equal the net amount received. That rate, annualized, is the estimated APR.

To see the payment schedule without fees, use the loan calculator; for home loans, the mortgage calculator shows the full monthly housing payment. The guide APR vs interest rate explains the difference in more depth.

Solved numerically for a fixed-rate loan with level monthly payments and fees paid at the start.

APR methods are not the same for every loan type. Mortgages, credit cards, adjustable-rate loans and loans with fees rolled into the balance follow different rules about which charges count and how payments are timed, so a lender's disclosed APR may differ from this estimate.