Free online Calculators

APR Calculator

Calculate and analyze your apr with this free online tool.

Free to use
12,500+ users
Updated January 2025
Instant results

APR Calculator

Interest Rate
6.5%
True APR
6.72%
Difference
+0.22%

What is APR?

Annual Percentage Rate (APR) is the true annual cost of a loan including all fees and charges, not just the interest rate. APR gives you a more accurate picture of what you'll actually pay.

Example: A 6% interest rate with $3,000 in fees becomes 6.5% APR - the real cost!

Important: APR is Higher!

The APR is 0.22% higher than the stated interest rate due to fees and closing costs.

Extra Cost Per Year
$440
Extra Cost (Total)
$4,500

Loan Type

Common Mortgage fees: Origination Fee, Points, Appraisal Fee, Title Fee

Total Fees:$4,500
Interest Rate
6.5%
Stated rate
True APR
6.72%
+0.22% higher
Monthly Payment
$1k
for 360 months
Total Fees
$5k
2.3% of loan

APR Breakdown

Loan Amount$200,000
Total Fees (Deducted)-$4,500
Net Amount Received$195,500

How APR is calculated: You receive $195,500 but must repay $200,000 at 6.5%. This makes your true cost 6.72% APR.

Total Interest
$255,089
Total w/ Fees
$259,589

Total Cost Breakdown

Principal
$200k
Interest
$255k
Fees
$5k

Understanding APR

Why APR matters:

Two loans with the same interest rate can have very different costs due to fees. Always compare APR, not just interest rates.

Lower rate doesn't mean lower cost:

A 6% loan with high fees can cost more than a 6.5% loan with low fees. APR reveals the truth.

Common fees included in APR:

Origination fees, points, closing costs, application fees, and more. Not included: appraisal fees, title insurance, or monthly service charges.

Related Financial Calculators

Amortization Calculator

Calculate your loan amortization schedule and see how each payment is split between principal and interest over time.

Auto Loan Affordability Calculator

Calculate the maximum vehicle price you can afford based on your desired monthly payment. Includes down payment, trade-in, and sales tax.

Auto Loan Calculator

Calculate your car loan monthly payment including vehicle price, down payment, trade-in value, sales tax, and interest.

Balloon Payment Calculator

Calculate monthly payments and the final balloon payment for balloon loans. See total interest and plan for the large final payment.

Bridge Loan Calculator

Calculate interest-only payments and total costs for bridge loans. Bridge loans provide short-term financing while transitioning between properties.

Business Loan Affordability Calculator

Calculate the maximum business loan you can afford based on revenue, operating margin, and Debt Service Coverage Ratio (DSCR) requirements.