APR Calculator
The true cost of a loan involves more than just the interest rate. Use these calculators to find the real Annual Percentage Rate (APR) by including fees, points, and other charges for various personal loans or mortgages.
General APR Calculator
For personal loans, student loans, etc.
Real APR
6.563%
Mortgage APR Calculator
For home loans.
Real Mortgage APR
6.367%
How to Use the APR Calculators
For the General APR Calculator:
Perfect for personal loans, student loans, or any non-mortgage debt. Enter the `Loan Amount`, `Loan Term`, `Interest Rate`, and any `Loaned Fees` (rolled into the loan) or `Upfront Fees` (paid out of pocket). The calculator will show your payment and the 'Real APR'.
For the Mortgage APR Calculator:
Specifically for home loans. Enter the `House Value`, your `Down Payment`, `Loan Term`, and `Interest Rate`. Then add any `Loan Fees` (like closing costs), `Points` you're paying to lower your rate, and annual `PMI` if your down payment is less than 20%. The calculator gives your monthly payment and the mortgage's 'Real APR'.
Frequently Asked Questions
What is APR?
The Annual Percentage Rate (APR) is the true cost of borrowing money over a year. It includes the interest rate plus any additional costs or fees required to get the loan, like origination fees, closing costs, and points. It gives you a more complete picture than the interest rate alone.
What's the difference between APR and interest rate?
The interest rate is simply the cost of borrowing the principal loan amount. APR is a broader measure that includes the interest rate AND all the fees, expressed as an annual percentage. This makes APR a more accurate tool for comparing different loan offers.
Why is my APR higher than my interest rate?
Your APR is almost always higher because it accounts for lender fees and other charges. The only time they would be the same is if the loan had zero fees.
What are 'loan fees' and 'points'?
Loan fees can include application fees, origination fees, or closing costs. Points (or 'discount points') are fees paid directly to the lender at closing in exchange for a reduced interest rate. One point costs 1% of your loan amount.