APR Calculator
The interest rate alone understates what a loan really costs. This calculator folds upfront fees and loaned fees into the payment stream and solves for the true annual percentage rate, then shows exactly how much of every dollar goes to interest and fees.
TheCalculators — APR Calculator
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Real APR
6.563%
$100,000 financed · 120 months · 6.00% nominal
- Amount Financed
- $100,000.00
- Upfront Out-of-Pocket Fees
- $2,500
- Payment Every Month
- $1,110.21
- Total of 120 Payments
- $133,224.60
- Total Interest
- $33,224.60
- All Payments + Fees
- $135,724.60
Cost breakdown
- Principal$100,000
- Interest$33,225
- Upfront fees$2,500
How real APR is found
- 1Monthly paymentComputed on $100,000 (amount + loaned fees) at the nominal 6.00%
- 2Amount actually received$100,000 − $2,500 upfront fees = $97,500
- 3SolveFind the rate that amortizes the net amount received into the same payment stream
- 4Real APR6.563%
APR reflects interest plus mandatory fees spread over the term. Variable-rate loans and optional costs (late fees) are not included.
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Formula
APR = rate r where P·r(1+r)^n/((1+r)^n−1) = payment, with P = amount − upfront fees
Pro tips
- • Two loans with the same rate can have very different APRs — the one with higher fees costs more.
- • On short loans, fixed fees push the APR far above the nominal rate; on 30-year mortgages the gap is smaller.
FAQ
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