Toolstia / APR calculator
APR calculator
A loan with a low rate and high fees can cost more than one with a higher rate and no fees. The APR combines both into one yearly percentage. Enter the loan amount, any upfront fees, the monthly payment and the number of payments to find it.
Enter the loan amount, your monthly payment and how many payments there are.
APR spreads fees over the life of the loan, so it shows the true yearly cost better than the quoted rate. Lenders in different countries may define APR slightly differently.
How it works
- Enter the loan amount and any upfront fees.
- Enter the monthly payment and number of payments.
- Read the APR, the rate without fees and the total cost.
What APR means
APR is the yearly rate that makes the payments you make equal to the money you actually receive, which is the loan minus the fees. It is always at least the quoted rate, and higher when there are fees.
How it is found
The tool searches for the monthly rate at which your payments have a present value equal to the net loan. The result is multiplied by 12 to give the APR.
Comparing offers
Compare loans of the same length by APR and by total cost. APR spreads fees over time, so a short loan with fees has a much higher APR than a long one.
Effective rate
The effective yearly rate shows the monthly rate compounded over a year. It is slightly higher than the APR, which is quoted as a simple multiple of the monthly rate.
Questions
Why is my APR different from the bank's?
Banks may include different fees or round differently. Ask what is included in theirs.
Can APR be lower than the rate?
No, not with fees. Without fees they are the same.
Is anything uploaded?
No. Your numbers stays in your browser and is never sent anywhere.