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Financial Calculators

APR Calculator

Modify the values and click the Calculate button to use
Loan Term

Real APR: 6.563%

Real APR
6.563%
Amount Financed
$100,000.00
Upfront Fees
$2,500.00
Payment
1,110.21
Payments
120
Total Payments
$133,224.60
Total Interest
$33,224.60
All Payments and Fees
$135,724.60

Amount financed, interest, and fees

Total cost74%24%
  • Amount financed$100,000.0073.7%
  • Total interest$33,224.6024.5%
  • Upfront fees$2,500.001.8%

What this APR calculator does

The annual percentage rate, or APR, reflects the cost of borrowing after including certain fees. This calculator finds the real APR on a loan from the amount borrowed, term, interest rate, compounding, repayment frequency, and upfront fees.

The result also shows the monthly or periodic payment, total payments, total interest, and the total of all payments and fees.

How to use this calculator

  1. Enter the loan amount and term.
  2. Enter the nominal interest rate.
  3. Choose how interest compounds and how often you repay.
  4. Enter any loaned fees and upfront fees.
  5. Click Calculate.

The default example borrows $100,000 for 10 years at 6% compounded monthly, repays monthly, and pays $2,500 in upfront fees. The real APR is 6.563%.

APR formula

The payment is based on the loan amount and nominal rate. The real APR is the rate that equates the present value of the payments with the cash actually received:

Proceeds = Loan amount + Loaned fees − Upfront fees
Payment = Amortized payment on the loan amount and nominal rate
Real APR = rate that makes PV(payments) = Proceeds

When compounding and repayment frequencies differ, the nominal rate is first converted to an effective annual rate and then to a rate per repayment period.

What the results include

  • Real APR: the annualized rate after upfront fees.
  • Amount financed: the loan amount plus any loaned fees.
  • Upfront fees: fees paid at closing.
  • Payment: the periodic payment.
  • Payments: the number of payments.
  • Total payments: payment multiplied by the count.
  • Total interest: total payments minus the amount financed.
  • All payments and fees: total payments plus upfront fees.

Assumptions and limitations

The calculator assumes a fixed nominal rate, equal payments, and fees paid at closing. It does not model variable rates, late fees, prepayment penalties, taxes, insurance, or mortgage-specific costs such as points and PMI. The real APR can differ from the lender's disclosed APR because disclosure rules may include different fees.

Frequently asked questions

What is the difference between APR and interest rate?

The interest rate determines the payment on the principal. APR also accounts for certain upfront fees, so it is usually higher than the nominal rate when fees are charged.

Why does the real APR increase when fees increase?

Fees reduce the cash you actually receive while the payments stay the same. The effective cost of borrowing therefore rises.

Does compounding frequency matter?

Yes. More frequent compounding raises the effective annual rate for the same nominal rate. The calculator converts the nominal rate to the selected repayment frequency.

Is APR the same as APY?

No. APR is an annualized borrowing cost. APY reflects compounding on an investment or deposit. The two use different conventions.

Source

References:

Disclaimer

This calculator is for informational purposes only. It is not a loan offer or financial advice. Confirm the disclosed APR and all fees with the lender.

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