APR Calculator
Convert a quoted rate plus lender fees into the true annual percentage rate of a loan.
What Is the APR Calculator?
The APR Calculator finds the internal rate that discounts your scheduled payments back to the money you actually receive after upfront finance charges. That is why APR is higher than the note rate whenever a loan carries origination fees, points or other prepaid charges.
How It Works
Enter the loan amount, quoted note rate, term and total upfront finance charges. The worksheet reports the monthly payment, the resulting APR and the total finance charge.
When to Use It
Use it to compare offers with different fee structures on equal footing, or to sanity-check a disclosed APR.
Frequently Asked Questions
- Why Is APR Higher Than My Rate?
- Fees reduce what you effectively borrow while payments stay the same, so the effective yearly cost rises above the note rate.
- Will This Match The Lender's Disclosure Exactly?
- It matches when the same fees are classified as finance charges. Lenders follow detailed regulatory rules about which fees count, so compare official Loan Estimates for the final decision.
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