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APR Calculator

Calculate the true Annual Percentage Rate (APR) of a loan including all upfront fees, origination charges, and other costs. Compare nominal interest rates with real borrowing costs.

APR Input Parameters

APR Calculation Results

Real APR
0.000%
Amount Financed
$0.00
Upfront Out-of-Pocket Fees
$0.00
Payment Every Period
$0.00
Total Number of Payments
0
Total of All Payments
$0.00
Total Interest Charged
$0.00
All Payments + Fees
$0.00

Cost Breakdown

APR Calculator Guide & Formula Reference

What is APR?

The Annual Percentage Rate (APR) represents the true annual cost of borrowing, including interest and all fees. It allows fair comparison between different loan offers.

Key Formulas

Periodic Rate = Annual Rate ÷ (100 × Periods per Year)

Periodic Payment = P × [r × (1+r)^n] ÷ [(1+r)^n − 1]

APR is solved using IRR on the cash flow series including upfront fees.

Input Definitions

  • Loan Amount: Principal before fees
  • Loaned Fees: Fees added to principal (accrue interest)
  • Upfront Fees: Cash paid at closing (increase effective APR)
  • Compound Frequency: How often interest is calculated
  • Payment Frequency: How often payments are made

Important Notes

  • APR is always higher than the nominal interest rate when upfront fees exist.
  • Early payoff increases the effective APR because fees are spread over fewer payments.
  • This calculator follows U.S. Truth in Lending Act (TILA) methodology.