APR Calculator
Find the true annual cost of a loan including fees.
Quick answer
APR (annual percentage rate) is the yearly cost of borrowing including fees, so it runs higher than the plain interest rate and is the better number for comparing loan offers. For credit cards, the daily periodic rate is roughly APR ÷ 365, applied to the balance each day.
True APR
8.29%
vs. 7.00% sticker rate
You receive
$19,400
Monthly payment
$396.02
Cost of fees
1.29%
Rate vs. APR
The interest rate prices the borrowing; APR folds upfront fees into that rate, answering what the loan really costs per year. Lenders must disclose APR precisely so offers with different fee structures can be compared on one number.
Fees hurt short loans most
A $600 fee on a 5-year loan adds about 0.6 points of APR — the same fee on a 2-year loan adds roughly triple that, because it's amortized over fewer payments. When comparing offers, match the term first, then compare APRs.
Frequently asked questions
- How does the APR Calculator work?
- APR (annual percentage rate) is the yearly cost of borrowing including fees, so it runs higher than the plain interest rate and is the better number for comparing loan offers. For credit cards, the daily periodic rate is roughly APR ÷ 365, applied to the balance each day.
- Is the APR Calculator free to use?
- Yes. The APR Calculator is completely free, runs entirely in your browser, and requires no account or sign-up. Your inputs never leave your device.
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