How to use the APR Calculator
The APR calculator shows the true yearly cost of a loan including upfront fees.
What you need to enter
- Loan amount ($)
- Stated rate (%)
- Term (years)
- Fees paid upfront ($)
The formula
APR is the rate at which the loan payments discount to the amount you actually receive (loan minus fees).
Worked example
Using the default values in the calculator:
- Loan amount ($): 20000
- Stated rate (%): 6
- Term (years): 5
- Fees paid upfront ($): 600
| APR | 7.274% |
| Monthly payment | $386.66 |
| Cost of fees in rate | 1.274% |
Tips for better results
- APR lets you compare offers fairly.
- Ask lenders for APR in writing.
Common mistakes to avoid
- Comparing only the headline rate.
- Forgetting that some fees are excluded from APR.
Please note: Calculators and guides give general estimates, not financial, tax or investment advice. Real offers depend on your lender, location and personal situation. See our Disclaimer.