APR Calculator
Calculate Annual Percentage Rate (APR) for loans, credit cards, and mortgages. Compare APR vs interest rate, include fees, and determine true cost of borrowing.
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Loan Information
$
% per year
Stated annual interest rate
months
$
Origination, processing, and other upfront fees
True Cost Analysis
True APR
8.79%
Including all fees
Monthly Payment
$332.14
Total Interest
$1,957.15
Total Cost
$12,257.15
Principal + interest + fees
Cost Comparison
Stated Interest Rate:12%
True APR (with fees):8.79%
The fees add -3.21% to your effective rate
Total Cost Breakdown
Loan Principal:$10,000.00
Upfront Fees:+$300.00
Total Interest:+$1,957.15
Total You Repay:$12,257.15
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How to Use the APR Calculator
Enter the loan amount, stated interest rate, loan term, and all upfront fees. The calculator shows the true APR including fees, making it easy to compare loan offers from different lenders.
APR vs Interest Rate Example
Loan 1: $10,000 at 10% interest, $500 fees → True APR: 12.3%
Loan 2: $10,000 at 11% interest, $0 fees → True APR: 11.0%
Loan 2 is cheaper despite the higher interest rate! Always compare APRs, not just interest rates.
Typical APRs by Loan Type (2024)
| Loan Type | Typical APR Range | Excellent Credit |
|---|---|---|
| 30-Year Mortgage | 6-8% | 6-6.5% |
| 15-Year Mortgage | 5.5-7% | 5.5-6% |
| Auto Loan (New) | 5-10% | 4-6% |
| Auto Loan (Used) | 6-12% | 5-7% |
| Personal Loan | 8-20% | 6-10% |
| Credit Card | 15-25% | 12-16% |
| Student Loan (Private) | 4-13% | 3-6% |
| Payday Loan | 300-400%+ | Avoid! |
Understanding Fees in APR
- Origination Fee: 1-8% of loan amount (common on personal loans)
- Processing Fee: $25-$500 flat fee
- Underwriting Fee: $300-$800 (mortgages)
- Points: 1 point = 1% of loan (mortgages - optional)
- Broker Fees: Varies by loan and broker
APR Comparison Tips
- Always compare APR, not just interest rates
- Request APR disclosure from all lenders (required by law)
- Watch for "low rate, high fees" tricks
- Calculate break-even point if paying points on mortgages
- Check if APR calculation includes all fees (some lenders omit certain fees)
- Remember: shorter loan terms typically have lower APRs
Factors That Affect Your APR
- Credit Score: Biggest factor - 100 points can change APR by 2-4%
- Loan Amount: Smaller loans often have higher APRs
- Loan Term: Longer terms = higher APRs
- Down Payment: Larger down payments = lower APRs (mortgages, auto)
- Income: Higher income can qualify for better rates
- Debt-to-Income Ratio: Lower ratio = better APR
- Collateral: Secured loans have lower APRs than unsecured
Red Flags to Avoid
- APR above 36% (predatory lending threshold)
- Payday loans with 300-400% APRs - never worth it
- Loans with prepayment penalties
- Variable APR that can spike dramatically
- Lenders who won't disclose APR upfront
- "No fee" loans with extremely high interest rates
Pro Tip: Even a 1% lower APR can save thousands over the life of a loan. On a $200,000 mortgage, reducing APR from 7% to 6% saves ~$42,000 over 30 years. Shop around for best rates!
Frequently Asked Questions
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