APR Calculator
Calculate Annual Percentage Rate for loans and mortgages
General APR Calculator
Calculate APR for personal loans, auto loans, and other financing options
Years
Months
Loan Summary
APR0.00%
Amount Financed
$0.00
Upfront Fees
$0.00
Monthly Payment
$0.00
Total Payments
$0.00
Total Interest
$0.00
Total Cost
$0.00
Cost Breakdown
Principal
Interest
Fees
Amortization Schedule
| Payment # | Beginning Balance | Payment | Principal | Interest | Ending Balance |
|---|
Mortgage APR Calculator
Calculate APR for mortgage loans in the United States
Years
Months
Mortgage Summary
APR0.00%
Loan Amount
$0.00
Down Payment
$0.00
Monthly Payment
$0.00
Total Payments
$0.00
Total Interest
$0.00
Total Cost
$0.00
Cost Breakdown
Principal
Interest
Fees
Our free APR Calculator helps you find the true annual cost of any loan — including interest, fees, and other charges — so you can compare loan offers accurately and make smarter financial decisions. It includes both a General APR Calculator for personal and auto loans and a Mortgage APR Calculator with points and PMI support.
How to Use This Calculator
1
For a general loan — enter the loan amount, loan term in years and months, and the stated interest rate.
2
Select how often interest compounds and how often you make payments — monthly is most common for standard loans.
3
Enter any loan fees and upfront fees — these are what make APR different from and higher than the interest rate.
4
For a mortgage — enter the house value, down payment percentage, loan term, interest rate, points, fees, and PMI if applicable.
5
Click Calculate APR to instantly see your true APR, monthly payment, total interest, total cost, and cost breakdown chart.
APR vs Interest Rate — What Is the Difference?
| Feature | Interest Rate | APR (Annual Percentage Rate) |
|---|---|---|
| What It Measures | Cost of borrowing the principal only | Total annualized cost including fees |
| Includes Fees? | No — principal interest only | Yes — interest plus most fees |
| Best Used For | Calculating your periodic interest charge | Comparing loan offers from different lenders |
| Higher or Lower? | Always lower than APR | Always equal to or higher than interest rate |
| Required by Law? | No legal disclosure requirement | Yes — mandated by Truth in Lending Act (TILA) |
Frequently Asked Questions
The APR is almost always higher than the stated interest rate because it includes additional costs beyond just the interest — such as origination fees, loan processing fees, points, and other charges. The interest rate only measures the cost of borrowing the principal. The APR spreads all of these upfront costs across the full loan term to give you a single annualized number that reflects the true total cost of the loan. A big gap between interest rate and APR means the loan has significant fees.
Mortgage APR typically includes origination fees, application fees, mortgage broker fees, processing fees, underwriting fees, discount points, mortgage insurance (PMI), and certain closing fees. However some costs are excluded from the APR calculation — including appraisal fees, survey fees, title insurance, builder warranties, and prepaid items like property taxes placed in escrow. Always ask your lender for a full itemized list of what is and is not included in their quoted APR.
APR (Annual Percentage Rate) applies to loans and debt — it tells you the annualized cost of borrowing. APY (Annual Percentage Yield) applies to savings and deposit accounts — it tells you the annualized return on your money including compounding. APY is always higher than APR for the same nominal rate because it accounts for compound interest. Banks advertise APR on loans to make the cost appear lower and APY on savings accounts to make the return appear higher.
Not always — especially if you plan to pay off the loan early. The APR assumes you hold the loan for its full term. For a mortgage you plan to refinance or pay off in 5 to 7 years a loan with lower upfront fees but a slightly higher rate may actually cost you less than a loan with a very low APR achieved through high upfront points. When comparing loans use APR as the primary tool but also calculate the total out of pocket cost for your specific expected payoff timeline.
Want to Understand APR Fully Before Taking a Loan?
Read our complete guide — what APR is, how it is calculated, APR vs interest rate, fixed vs variable, and smart tips for comparing loan offers.