APR Calculator

    Calculate the true Annual Percentage Rate of your loan including all fees and costs. Compare APR vs interest rate.

    Annual Percentage Rate Calculator

    Include origination fees, application fees, processing fees, etc.

    About Annual Percentage Rate (APR)

    APR represents the true annual cost of borrowing, including interest rate and all fees. It provides a standardized way to compare loan offers from different lenders.

    APR vs Interest Rate

    • Interest Rate: Cost of borrowing the principal amount only
    • APR: Interest rate + fees expressed as annual percentage
    • Key Difference: APR is always higher when fees are involved
    • Comparing Loans: Use APR, not interest rate, for accurate comparison

    Fees Included in APR

    • Origination Fee: Charged for processing loan application
    • Points: Prepaid interest on mortgages (1 point = 1% of loan)
    • Processing Fees: Administrative costs
    • Underwriting Fees: Cost of evaluating loan application
    • Private Mortgage Insurance: For mortgages with less than 20% down

    Fees NOT Included in APR

    • Appraisal Fees: Third-party property valuation
    • Title Insurance: Protection for property ownership
    • Credit Report Fees: Cost of pulling credit history
    • Prepayment Penalties: Fees for early loan payoff
    • Late Payment Fees: Charges for missed payments

    Types of APR

    • Fixed APR: Rate stays constant throughout loan term
    • Variable APR: Rate fluctuates based on index (e.g., prime rate)
    • Promotional APR: Temporary low rate for initial period
    • Purchase APR: Rate for new purchases on credit cards
    • Balance Transfer APR: Rate for transferred balances
    • Cash Advance APR: Typically highest rate for cash withdrawals

    APR by Loan Type

    • Mortgages: 3-8% APR (varies with credit, down payment)
    • Auto Loans: 4-12% APR (depends on credit score, vehicle age)
    • Personal Loans: 6-36% APR (unsecured, varies widely)
    • Credit Cards: 15-25% APR average (can exceed 30%)
    • Student Loans: 4-12% APR (federal vs private)

    How to Get Lower APR

    • Improve Credit Score: Higher score = lower APR offers
    • Larger Down Payment: Reduces lender risk
    • Shorter Loan Term: Less risk for lender = lower rate
    • Shop Multiple Lenders: Compare at least 3-5 offers
    • Negotiate Fees: Some fees may be waived or reduced
    • Consider Points: Pay upfront to reduce APR on mortgages

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