APR Calculator
Free APR calculator: the annual percentage rate of a loan or mortgage with origination fees, points and closing costs, plus the payment and finance charge.
What it does
The APR (annual percentage rate) is the yearly cost of a loan including the fees paid to get it, such as origination fees, discount points and some closing costs. US lenders must show it under the Truth in Lending Act so loans can be compared. This calculator finds the rate at which the monthly payments repay only the money you actually receive, which is how Regulation Z defines the APR. The finance charge is all the interest plus the fees.
How to use it
- Type the loan amount, the interest rate and the term in years.
- Add every fee you pay to get the loan: origination, points, broker and other finance charges.
- Tick the box if the fees are added to the loan instead of paid at closing.
The arithmetic runs in your browser. Nothing you type is sent anywhere and nothing is stored, so you can use these with real numbers.
Frequently asked questions
What is the difference between interest rate and APR?
The interest rate sets the monthly payment. The APR adds the fees, spread over the term, so it is higher whenever there are fees. Two loans with the same rate can have different APRs; the lower APR is cheaper if you keep the loan to the end.
Which fees count in the APR?
Finance charges such as origination fees, discount points, mortgage broker fees and mortgage insurance. Costs you would pay in a cash sale, such as the appraisal, title insurance and recording fees, are usually left out on mortgages.
Why does the APR matter less if I sell or refinance early?
The APR spreads the fees over the whole term. If you pay the loan off after a few years, the fees weigh much more on each year you kept it, so a loan with no points and a slightly higher rate can come out cheaper.
Is APR the same as APY?
No. The APR is a simple yearly rate, the monthly rate times 12, and is used for loans. The APY includes compounding and is used for savings: a 12% APR charged monthly is a 12.68% effective yearly rate.
🏦 Loan Calculator
🏠 Mortgage Calculator
🏡 HELOC Calculator
Regulation Z, § 1026.22 Determination of annual percentage rate
Regulation Z, § 1026.4 Finance charge