APR Calculator

FINANCIAL MATH

Find a loan effective APR once upfront fees are included, so you can compare offers fairly. Enter the loan, rate, term, and fees.

Effective APR
— %
Fees included.

Usage Tip

When comparing loans, line up the APRs, not the headline rates — a lower rate with high fees can cost more.

THE MATH
APR is the rate where the present value of all payments equals the amount you actually receive (loan minus fees).
Solved numerically from payment, term, and net proceeds.
The nominal rate ignores fees; APR includes them, so APR is the better number for comparing loan offers.
With no fees, APR equals the nominal rate.
APR assumes you keep the loan to term; paying off early makes the effective cost of upfront fees higher.
APR does not include within-year compounding (that is APY); for savings, compare APY instead.
Lenders must disclose APR, which makes it the fairest cross-lender comparison.
Practical Notes

A loan’s stated interest rate often leaves out upfront fees, such as origination or processing charges. When those fees are paid at the start, you effectively receive less money than the loan amount while still repaying the full amount, which raises the true cost of borrowing. The effective APR measures that cost as a single yearly rate.

Comparing offers by effective APR is fairer than comparing the stated rate alone, because a lower rate with high fees can cost more than a higher rate with none. A short loan term makes the fees count for more per year. Check whether the lender includes the fees in the loan amount or charges them separately, and ask for the full cost of borrowing before agreeing to anything.

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The calculators and tools on Formula Factory are provided for general guidance and informational purposes only. Results are estimates based on standard formulas and the values you enter — they do not constitute professional engineering, electrical, or architectural advice. Always verify calculations with a qualified professional before making decisions for any safety-critical, code-compliance, or commercial application. Formula Factory makes no representations or warranties as to the accuracy or completeness of any result, and accepts no liability for errors, omissions, or any outcomes arising from reliance on this information.