APR Calculator
Use our free APR calculator to quickly estimate your annual percentage rate (APR) based on key inputs like loan amount, interest rate, loan term, and fees. Perfect for borrowers comparing personal loans, mortgages, or auto financing. This calculator helps you understand the real cost of borrowing by factoring in interest and upfront fees over the loan’s duration. Knowing your APR helps you compare offers fairly, avoid hidden costs, and make confident borrowing decisions. Whether you’re refinancing or taking out a new loan, this tool simplifies the math and saves time.
APR Formula
Understanding APR helps you see the full borrowing cost, not just the stated interest rate. Many lenders advertise “low rates” that exclude origination or processing fees, which can add hundreds of dollars over time. The APR combines interest and fees into one standardized percentage so you can compare loans side by side. It’s especially useful for spotting deceptive offers, short-term promotional rates, or loans with irregular fee structures. By calculating APR, borrowers can anticipate total costs, budget more accurately, and negotiate more confidently. Instead of crunching the numbers manually, use our APR Calculator to instantly reveal the true cost of any loan offer.
How this APR calculator works
This calculator estimates your annual percentage rate using the formula above. It’s designed to provide a fast, clear view of your total borrowing cost and help you compare loan offers fairly.
Here’s how it works:
The result gives you an apples-to-apples APR for any loan type. Local laws, credit scores, and lender policies may slightly change the calculation, but this tool gives a reliable estimate for most consumer loans.
When to use this APR calculator
Use this calculator whenever you need to understand the total borrowing cost of a loan—not just the headline interest rate.
Comparing loan offers: Evaluate multiple lenders with different fee structures.
Planning a refinance: See if switching to a lower rate really saves money after fees.
Estimating total loan cost: Check what you’ll pay over time for personal, mortgage, or auto loans.
Assessing short-term loans: Identify high-APR payday or quick-cash loans that may seem cheap upfront.
Budgeting for repayments: Plan monthly and annual costs to avoid surprises.
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Average APR by Industry
Understand how APR rates vary across lending markets. Use these typical ranges to gauge whether your offers are competitive.
Personal loans
Credit cards
Auto loans (new cars)
Auto loans (used cars)
Mortgages (fixed-rate)
Payday loans
These benchmarks help borrowers and financial planners compare rates and identify when lenders are offering fair or inflated terms.
Frequently Asked Questions
APR stands for Annual Percentage Rate, representing the total yearly cost of borrowing, including interest and fees. It helps compare loans fairly by showing the true cost beyond the base rate.
Interest rate is the cost of borrowing principal. APR includes interest plus fees for a true cost of borrowing.
Factor Rate tells you the total repayment amount as a multiple of the borrowed amount. APR (Annual Percentage Rate) expresses the yearly cost of borrowing, including fees and interest, as a percentage. APR allows easier comparison with traditional loans.
It works best for fixed-rate loans. For ARMs, APR reflects the initial rate but future adjustments may vary.
Yes—enter all upfront fees to see their impact on APR.
No—APR includes only loan-related costs, not escrow items.
Because it includes lender fees and closing costs spread over the loan term.
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