APR Calculator
Calculate the true annual percentage rate including fees
APR
—
Related Calculators
Frequently Asked Questions
What is APR and how is it different from interest rate?
The interest rate is the base cost of borrowing. APR (Annual Percentage Rate) includes the interest rate PLUS fees and other costs, expressed as a yearly rate. APR is always equal to or higher than the stated rate. It is the true cost of the loan.
Why is APR important when comparing loans?
Two loans with the same interest rate can have very different APRs if one has high origination fees. Always compare APR, not just interest rate. A 6% loan with $2,000 in fees may cost more than a 6.5% loan with no fees on a short-term loan.
What fees are typically included in APR?
Origination fees, underwriting fees, broker fees, mortgage points (for home loans), and other mandatory closing costs. NOT included: appraisal, title insurance, escrow, and other third-party fees that vary by provider.
What is a good APR for a personal loan?
Under 10% is excellent. 10-15% is good. 15-20% is fair. Above 20% is high. Credit cards average 21-24% APR. Payday loans can exceed 400% APR. Your rate depends heavily on credit score, income, and loan term.
Does APR account for compounding?
Standard APR does not account for compounding. APY (Annual Percentage Yield) does. When comparing savings accounts, use APY. When comparing loans, APR is the standard. For credit cards, APR divided by 365 gives daily periodic rate, which compounds monthly.
Typical APR Ranges by Loan Type
| Loan Type | Good Credit APR |
|---|---|
| 30-yr Mortgage | 6-8% |
| 15-yr Mortgage | 5.5-7% |
| Auto Loan | 5-9% |
| Personal Loan | 8-15% |
| Student Loan | 5-8% |
| Credit Card | 18-25% |
| Payday Loan | 300-400%+ |
How Fees Impact APR
$20,000 loan at 6%, 60 months. Fee impact:
| Fees | APR | Extra Cost |
|---|---|---|
| $0 | 6.00% | $0 |
| $250 | 6.26% | $250 |
| $500 | 6.52% | $500 |
| $1,000 | 7.04% | $1,000 |
| $2,000 | 8.07% | $2,000 |