APR Calculator
The advertised interest rate is not the full story. This APR calculator adds processing fees, documentation charges and monthly costs to the rate you were offered, revealing the true annual cost of a loan so you can compare offers on equal terms.
How to use
- Enter the loan amount, advertised rate and term.
- Write upfront amounts like processing fee, documentation and insurance in the fees field.
- Enter the charges applied every month in the monthly charges field.
- Compare the true APR with the advertised rate — a higher APR means a more expensive loan.
Note
APR is solved numerically so that the present value of all payments equals the net amount you actually receive. Lenders may disclose APR with slightly different conventions.
Frequently Asked Questions (FAQ)
What does the true APR include?
It adds the advertised annual rate together with upfront fees and monthly charges, so you can compare loan offers fairly.
Which fees should I enter?
Enter upfront charges like processing and documentation fees, plus any monthly insurance or charges, so the true cost is captured.
What do the results show?
The true APR, the effective annual rate, the monthly payment including monthly charges, the net amount you actually receive, the total cost of the loan and the extra cost versus the advertised rate.
How is the APR actually calculated?
It is solved numerically so that the present value of all your payments equals the net amount you actually receive.
Will my lender's APR match exactly?
Not always. Lenders may use slightly different disclosure conventions, so small differences are normal.