APR Calculator

Estimate the real borrowing cost of a loan by backing into APR from the amount borrowed, payment, term, and lender fees.

Loan amount

Monthly payment

Loan term (months)

Upfront fees financed into APR

Estimated APR

6.89%

Amount financed

$23,800.00

Total finance charge

$3,200.00

Total paid

$28,200.00

This calculator estimates APR by comparing the payment stream to the amount actually financed after fees. It is most useful for installment loans where you know the payment, term, and financed charges.

How to Use

Enter the original loan amount before any prepaid finance charges are considered.
Add the required monthly payment and the total term in months from the loan offer.
Include lender fees or financed charges that increase the true cost of borrowing.
Review the estimated APR, amount financed, total finance charge, and total paid before comparing the offer with alternatives.

Frequently Asked Questions

Why use an APR calculator instead of just the interest rate?

The note rate tells you the stated interest charge, but APR also pulls in qualifying finance charges. That makes it much better for side-by-side loan comparison when fees differ.

Why can APR be higher than the advertised rate?

APR includes eligible finance charges, so a loan with points, origination fees, or other upfront costs usually shows a higher APR than the simple interest rate alone.

What types of loans does this calculator fit best?

It is strongest for fixed-payment installment loans such as personal loans, auto loans, mortgages, and refinance offers where the payment and term are already known.

Is this the same as the lender's official disclosure?

No. This is a planning estimate. Official lender APR disclosures may differ slightly because exact timing, prepaid items, and fee treatment can change the calculation.