FinanceUpdated Aug 2026

APR Calculator

Find the true Annual Percentage Rate including both interest rate and upfront fees. Compare loan offers on equal footing.

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Updated 2026

What is an APR (Annual Percentage Rate) calculator?

An APR calculator shows the true cost of a loan by including both the interest rate and any upfront fees (origination, points, closing costs) as a single annualized rate. Lenders are required to disclose APR under the Truth in Lending Act (TILA) so you can compare loan offers fairly. Our APR calculator uses bisection search to find the rate that equates the present value of all monthly payments to the loan amount minus fees, giving you the actual borrowing cost in a single percentage.

APR Calculator

Common: 1-5% of loan amount

Note rate (advertised):

6.50%

APR (true cost):

7.780%

Monthly payment:

$195.66

Total interest + fees:

$2,039.69

APR is the Annual Percentage Rate, which includes both the note rate and any fees folded into the loan. The lender is required to disclose APR under the Truth in Lending Act (TILA) so you can compare loan offers fairly. Lower APR = lower true cost of borrowing.

Quick Answer: Monthly Payment on Common Loan APRs

Monthly payment on a $10,000 3-year personal loan at common APRs (which includes fees + interest rate):

APRMonthly paymentTotal interestTotal paid
8%$313$1,272$11,272
12%$332$1,950$11,950
18%$361$2,997$12,997
24%$391$4,074$14,074

APR includes fees + interest rate, making it a better comparison tool than interest rate alone. Credit card APRs range 18-29% in 2026. Use the calculator above with your specific loan terms.

APR (Annual Percentage Rate)

Verified accuracy

Cross-checked against authoritative formulas (IRS, NIST, ACSM) and updated for 2025/2026 tax years and rates.

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We never collect, store, or transmit your inputs. Every calculation runs locally in your browser.

Learn as you calculate

Each calculator includes the formula, plain-English explanation, and FAQs so you understand the result.

Estimates only. Calculator results are for educational and planning purposes — not professional advice. For binding decisions on taxes, investments, health, or legal matters, consult a qualified professional.

FAQ

Frequently asked questions

Everything you need to know about this calculator. Can't find what you're looking for? Email our team.

An APR (Annual Percentage Rate) calculator is a free loan-cost comparison tool that shows the true cost of borrowing including both the interest rate and any fees. Our APR calculator accepts loan amount, note rate (advertised interest), term, and upfront fees, then uses bisection search to find the APR — the rate at which the present value of all monthly payments equals the loan amount minus fees. APR is required to be disclosed by lenders under the Truth in Lending Act (TILA).

How it works

How to calculate APR (Annual Percentage Rate) for a loan

Our APR calculator finds the true cost-of-borrowing rate by including both the note rate and any upfront fees, using bisection search to solve the loan equation.

  1. 1

    Enter loan amount and term

    Type the loan principal and term in years. The APR calculator computes the monthly payment from the note rate using the standard amortization formula.

  2. 2

    Enter the note rate (advertised interest rate)

    Type the interest rate the lender quoted. This is the rate applied to the loan balance before fees.

  3. 3

    Enter upfront fees

    Type the total of any origination fees, discount points, or closing costs that the lender charges. Our APR calculator subtracts this from the loan principal to find the actual amount you receive.

  4. 4

    Read the result

    The APR calculator shows the note rate, the true APR, the monthly payment, and the total cost (interest + fees). The APR is always equal to or higher than the note rate — the gap shows how much the fees add to your cost.

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