APR breakdown
See how fees change the rate
- Stated interest rate
- 8.00%
- Prepaid fees
- $650.00
- APR impact from fees
- +4.63%
- Estimated APR
- 12.63%
Back to toolsLoan APR calculator
Free APR Calculator
An APR calculator converts a loan's interest rate, repayment term, origination fee, and other prepaid finance charges into annual percentage rate. Use it to compare the true cost of loan offers before you borrow.
Estimated APR
12.63%
Fee impact
+4.63%
Amount received
$9,350
Estimated APR
12.63%
APR reflects the payment stream against the amount of cash you actually receive after upfront finance charges.
Monthly payment
$313
Payment based on the stated interest rate and full loan amount.
Finance charge
$1,931
Total payments minus the amount of cash received after fees.
Amount received
$9,350
Loan proceeds after origination and other prepaid fees.
Total payments
$11,281
All scheduled principal and interest payments over the term.
How to use this estimate
Compare offers on true cost
Step 1
Enter the loan amount
Start with the amount being financed before origination fees or other prepaid finance charges are deducted.
Step 2
Add rate, term, and fees
Enter the stated interest rate, repayment term, origination fee, and any other prepaid fees required to get the loan.
Step 3
Compare APR and payment
Review the APR, monthly payment, total finance charge, and amount received so you can compare loan offers on true cost.
FAQ
APR calculator questions
APR rules can vary by lender and loan type. Use this as an estimate and compare it with lender disclosures before signing.
What is an APR calculator?
An APR calculator converts a loan's interest rate and required prepaid fees into annual percentage rate. APR makes loan offers easier to compare because it reflects more of the true borrowing cost than the interest rate alone.
How is APR different from interest rate?
The interest rate measures the cost of borrowing principal. APR includes the interest rate plus certain lender fees, origination charges, and prepaid finance charges expressed as an annual rate.
Why can APR be higher than the interest rate?
APR is usually higher when the borrower pays upfront fees. Those fees reduce the cash received but the borrower still repays the full loan amount, which raises the effective annual cost.
Should I compare loans by APR or monthly payment?
Compare both. APR is useful for true cost, while monthly payment shows cash-flow fit. A lower payment can still cost more if the term is longer or fees are higher.
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