APR Calculator
Calculate the true Annual Percentage Rate on a loan, accounting for upfront fees.
$
%
$
True APR
7.06%
Monthly payment
$387
How this is calculated
This calculator solves for the interest rate that equates the present value of your monthly payments to the net amount you actually receive after fees are deducted, expressed as an annualized percentage.
Related Calculators
Frequently Asked Questions
What is the difference between interest rate and APR?
The interest rate reflects only the cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate plus certain upfront fees, spread over the loan term, giving a more complete picture of the loan’s true cost.
Why is APR always equal to or higher than the interest rate?
APR incorporates fees on top of the interest rate. With no fees, APR equals the interest rate; any fees financed into the loan raise the effective APR above the stated rate.