Loan details
Finance charges
Other feesLender charges in dollars, plus third party costs that stay out of the APR
Card balance
Interest is charged on each day's balance and added back in, so it compounds daily.
See full breakdown
APR is the yearly cost of a loan once lender fees are folded in with the interest. Lenders find it by subtracting prepaid charges such as points and origination fees from the loan, then solving for the rate at which the payments repay that smaller amount. That is why APR almost always sits above the note rate: $200,000 at 6% with $5,000 in fees carries a 6.238% APR. Title, appraisal and credit report fees stay out of a mortgage APR, and the same fee pushes the APR higher on a short loan than on a long one.
How do you calculate APR on a loan?
Take the fees you pay to get the loan off the amount you borrow, then find the rate at which your real payments repay what you actually received. This annual percentage rate calculator does that search for you, the same way a lender fills in the APR box on your disclosure.
| Quick shortcut what many sites still show | Exact APR what lenders must disclose | |
|---|---|---|
| Starts from | The full loan amount | Amount financed: loan minus points, origination and other prepaid lender charges |
| Counts | Total interest + fees, spread evenly over every year | Each scheduled payment, on the date it is due |
| The math | (Interest + fees) ÷ loan ÷ years × 100 | Find the rate where the payments, discounted back, equal the amount financed, then multiply by payments per year |
| Weak spot | Ignores that the balance shrinks, so it runs far too low on long loans | Assumes you keep the loan to the end; paying off early makes the fees cost more per year |
| $200,000 example | 3.94% | 6.238% |
Worked example: $200,000 at 6% for 30 years, 1 point, 1% origination and $1,000 of other lender fees
Solve for the rate that repays $195,000 with 360 payments of $1,199.10
The 360 payments add up to $431,676. Subtract the $195,000 you received and the finance charge comes to $236,676: $231,676 of interest plus the $5,000 in fees. Want to see how each of those payments splits between interest and balance? Open the amortization schedule calculator.
When to use an APR calculator
Any time a loan has fees attached, the headline rate tells only part of the story. These are the moments when the APR is worth working out yourself.
- Comparing loan offers: two lenders can quote the same rate with very different fees. Put each offer through the annual percentage rate calculator and the lower APR is the cheaper loan, as long as you keep it for the full term.
- Planning a refinance: check that a lower rate still wins once its points and closing fees are counted.
- Estimating total loan cost: see the payment, the finance charge and every dollar you will hand over on a personal, auto or home loan.
- Assessing short term loans: a flat $15 on every $100 sounds small until it is stated as a yearly rate. On a two week payday loan that works out to almost 400% APR, which is why short loans need checking the most.
- Budgeting for repayments: plan the monthly payment and the yearly total before you sign.
- Financing a truck or equipment: home service owners can price a van, a jetter or a lift by its APR instead of the dealer's monthly figure. Weekly and biweekly payment schedules are built in for lenders that collect that way.
- Checking a card balance: the second tab shows what a carried balance costs per day and per month.
- Reading a factor rate offer: a merchant cash advance quoted as 1.4 looks like 40%, but the yearly cost is far higher. The business rates section below converts one so it can sit beside a bank quote.
What is a good APR for each kind of loan?
A good APR is one that beats the going average for that type of loan. Banks charged 11.90% on 24 month personal loans in August 2026, so a 5% APR on a personal loan or a car is a strong rate by any current yardstick.
| Type of borrowing | Average rate | Measured |
|---|---|---|
| Bank personal loan, 24 month term | 11.90% | August 2026 |
| Credit card, every account | 21.19% | August 2026 |
| Credit card, only accounts paying interest | 22.36% | August 2026 |
| New car, 60 month bank loan | 7.54% | August 2026 |
| New car, 72 month bank loan | 7.17% | August 2026 |
| Used car loan, all credit tiers | 11.19% | April to June 2026 |
| 30 year fixed mortgage, rate before fees | 7.28% | Week to October 1, 2026 |
| Two week payday loan at $15 per $100 | almost 400% | Typical fee |
Used car APR by credit score
| Credit tier | Score range | Average APR |
|---|---|---|
| Super prime | 781 to 850 | 6.29% |
| Prime | 661 to 780 | 8.81% |
| Near prime | 601 to 660 | 13.93% |
| Subprime | 501 to 600 | 19.10% |
| Deep subprime | 300 to 500 | 21.62% |
Your score moves the APR more than almost anything else: the same used car costs about 15 points more a year at the bottom tier than at the top.
Which fees are included in the APR?
Federal lending rules count any charge the lender requires as a condition of the loan. Points, loan fees and mortgage insurance go in; title, appraisal, credit report and escrow payments for a home loan stay out.
| Charge | In the APR? | Detail |
|---|---|---|
| Interest | Yes | The base of every APR |
| Discount points | Yes | One point is 1% of the loan, so $2,000 on $200,000. Fractions such as 0.125 or 0.5 points are common. |
| Origination and other loan fees | Yes | Includes assumption and finder's fees |
| Mortgage broker fees | Yes | Paid to get the loan, so they count |
| Mortgage insurance premiums | Yes | Any insurance protecting the lender if the borrower defaults |
| Title search and title insurance | No | Left out of a home loan APR when the amount is genuine and reasonable |
| Appraisal or inspection before closing | No | Same real estate exclusion |
| Credit report and notary fees | No | Kept out on home loans |
| Escrow for property tax and home insurance | No | Not a cost of the credit itself |
Why does the same fee raise the APR more on a short loan?
A fixed fee gets spread over fewer years on a short loan, so each year carries more of it. Shorten the term and the gap between the APR and the note rate widens, even when the fee itself stays put.
| Loan | Fees in the APR | Term | Payment | APR |
|---|---|---|---|---|
| $200,000 at 6% | $5,000 | 30 years | $1,199.10 | 6.238% |
| $200,000 at 6% | $5,000 | 15 years | $1,687.71 | 6.398% |
| $200,000 at 6% | $5,000 | 10 years | $2,220.41 | 6.563% |
| $20,000 at 9% | $500 | 5 years | $415.17 | 10.089% |
| $20,000 at 9% | $500 | 3 years | $635.99 | 10.739% |
| $20,000 at 9% | $500 | 1 year | $1,749.03 | 13.802% |
What the APR leaves out
The disclosed figure assumes the loan runs its full course. Pay it off early, or sell the house after a few years, and the upfront fees end up spread over less time, so the APR understates what you really paid. When two loans show the same APR and you might not keep yours long, take the one with lower upfront fees. The calculator also holds the rate fixed for the whole term; on an adjustable loan the payments after the first reset will differ from what it shows.
What APR do business loans and cash advances carry?
Small business bank loans averaged 6.37% to 10.98% in early 2026. Alternative lenders run much higher, and a merchant cash advance can reach 350% APR once its factor rate is converted.
| Financing type | Typical APR range |
|---|---|
| Bank term loan | 6.37% to 10.98% |
| SBA loan, variable rate | 10% to 13.5% |
| SBA loan, fixed rate | 12% to 15% |
| Equipment financing (trucks, tools, machines) | 4% to 45% |
| Business line of credit | 10% to 99% |
| Online term loan | 14% to 99% |
| Invoice factoring | 10% to 79% |
| Merchant cash advance | 40% to 350% |
Factor rate to APR: a $50,000 advance at a 1.4 factor rate, repaid weekly over six months
A factor rate is charged once on the full amount, so paying it down never lowers the cost, and a short payback squeezes that $20,000 into half a year. To check any offer, enter the advance as the loan, pick the weekly schedule and adjust the interest rate until the payment matches what the lender quoted.
Offering financing on a furnace, a roof or a panel upgrade? The customer still has to get you on the phone.
Quote a big job as a monthly payment and the homeowner who likes that number will call back with questions about terms, often in the evening or at the weekend. If nobody answers, the next contractor on their list gets the work and your financing offer goes with it. ServiceAgent picks up every call, evenings and weekends included, notes what the customer wants, books the estimate visit and follows up until they decide.
Book a free demoFrequently asked questions
Straight answers on APR, the fees behind it and how to read the number you are quoted.
Book a free demoWhat does APR mean in simple terms?
APR stands for annual percentage rate. It is what a loan costs you per year with the lender's fees counted alongside the interest, written as one percentage so different offers can be lined up fairly.
What's the difference between the interest rate and the APR?
The interest rate is only the yearly charge for borrowing the money. The APR is the broader measure: it adds points, broker fees and other charges you pay to get the loan, which is why it usually reads higher.
How do I calculate APR?
Subtract the prepaid finance charges from the loan to get the amount financed. Then find the periodic rate at which your scheduled payments repay exactly that amount and multiply it by the number of payments in a year. Lenders solve it by trial, and this annual percentage rate calculator does the same in a fraction of a second.
How much is 26.99 APR on $3,000?
About $67 a month in interest if the balance sits there. The daily rate is 26.99% ÷ 365, or 0.0739%, and compounding it over a 30 day cycle comes to $67.27. Over a full year of daily compounding the effective rate climbs to about 30.97%. Try your own balance on the Card interest tab.
Is 5% APR a good rate?
Yes for almost any consumer loan today. It sits well under the 11.90% banks averaged on 24 month personal loans, under every new and used car average, and under the 7.28% average 30 year mortgage rate.
How does a factor rate differ from an APR?
A factor rate is a decimal, such as 1.3, that you multiply by the amount borrowed to get the total you repay. It is charged once on the full amount, while an APR is a yearly percentage applied to a shrinking balance. Converting the factor rate into an APR is the only fair way to compare it with a bank loan.
What is the difference between APR and APY?
APY counts compounding and APR does not. To convert, use (1 + APR ÷ n)^n minus 1, with n as the compounding periods per year: a 10% APR compounded monthly equals a 10.47% yearly rate. The results panel shows this as the effective yearly rate.
Does this calculator include variable rate loans?
It works best for fixed rate loans, because it holds the rate steady for the whole term. On an adjustable rate mortgage (ARM), enter the initial rate to see the APR as disclosed, and expect future adjustments to change the real cost.
Can I add fees like PMI or origination costs?
Yes. Enter points and the origination fee as percentages, and any other lender charge, including an upfront mortgage insurance premium, under Other fees. Monthly mortgage insurance also counts toward a disclosed home loan APR, so the lender's figure can run slightly above this one when you pay it.
Does APR include taxes or insurance?
Not property taxes or homeowners insurance. Money paid into escrow for those bills is left out, and so are title, appraisal and credit report fees on a home loan. Enter those under Title, appraisal, credit report to see them in the total loan cost without changing the APR.
Why is APR higher than the interest rate?
Because fees shrink the money you actually receive while the payments stay the same, so the true rate on what you got is higher. With no fees at all the two numbers match.
How does this integrate with my workflow?
Home service owners use it for quick loan comparisons on their own trucks and equipment, and to explain financing in estimates for bigger jobs. ServiceAgent handles the calls that follow, answering questions, booking estimate visits and sending follow ups, so a financing offer turns into scheduled work.
Leads growth and product marketing for ServiceAgent at SaaS Labs, where he has worked in product marketing since 2020. Writes ServiceAgent's coverage of AI call answering, CRM and home services operations.
Published by ServiceAgent, the AI front office for home service teams. Estimates only. The APR shown assumes a fixed rate, payments made on schedule and the loan kept to the end of its term. The figure on your lender's disclosure is the one that applies to your loan.