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What this calculator does
Compare borrowing costs by converting interest and loan fees into an annual percentage rate.
How to use this calculator
- Enter the amount financed, rate, term, and relevant fees.
- Review the calculation assumptions before using the result.
- APR makes offers with different fees easier to compare.
How to calculate
Enter the values requested by the apr calculator.
Worked example
With the example values shown above, the effective annual rate is 8.3%, and the annual percentage rate is 8%, and the effective APR is 8.3%.
Understanding your result
APR makes offers with different fees easier to compare.
- It is an estimate, not a lender disclosure.
- Double-check values and units before calculating.
This calculator is educational and is not financial or medical advice.
Frequently asked questions
What does this apr calculator do?
Compare borrowing costs by converting interest and loan fees into an annual percentage rate.
How do I use this apr calculator?
Enter the amount financed, rate, term, and relevant fees.
What does the result mean?
APR makes offers with different fees easier to compare.
What should I check before relying on it?
It is an estimate, not a lender disclosure.
Why is APR usually higher than the stated interest rate?
APR folds in most required lender fees on top of interest, expressed as a single annualized rate — since it captures more of the loan's true cost, it's typically higher than the bare interest rate alone.
Can I use APR alone to compare loans with different terms?
It's a good starting point, but the same fee has a bigger annualized effect on a short-term loan than a long-term one, so also compare the total dollar cost, not just the percentage.