APR Calculator
True annual cost of a loan including fees.
- Monthly payment
- $1,199.10
- Net amount received
- $196,000.00
- Total interest
- $231,676.38
- Total cost incl. fees
- $235,676.38
How this calculator works
APR finds the interest rate at which the money you actually receive (loan minus fees) would produce the same monthly payment. It is solved numerically.
Formula
Find APR where Payment(Loan − Fees, APR, n) = Payment(Loan, rate, n)
Example
A $200,000 loan at 6% for 30 years with $4,000 in fees has an APR of roughly 6.2%.
When to use it
- Compare loans with different fee structures
- Check a lender's disclosed APR
- Decide whether to pay points
Frequently asked questions
Why is the APR higher than the interest rate?
APR spreads upfront fees across the life of the loan and expresses the total as a yearly rate, so any fees push it above the stated rate.
Which fees count toward APR?
Usually origination fees, discount points and certain closing costs. Some items, such as appraisal or title fees, may be excluded depending on local rules.
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