Financial Tool

APR Calculator

Calculate the true cost of a loan (APR) by including upfront fees and points.

Loan Amount ($)

Stated Interest Rate (%)

Loan Term (Years)

Total Fees / Points ($)

Σ The Formula

APR = IRR(Cash Flows) × 12

Real World Examples

Mortgage with Points

$200k at 6.5% for 30 years with $3,000 in closing costs. APR is higher than 6.5%.

Auto Loan Fees

$25,000 at 5% for 5 years with a $500 document fee.

# About This Calculator

The Annual Percentage Rate (APR) is the broader measure of the cost to you of borrowing money. While the interest rate tells you only the cost of the principal, the APR includes the interest rate plus other charges or fees (such as mortgage insurance, most closing costs, points, and loan origination fees).

APR is designed to help you compare "apples to apples" when looking at different loan offers. A loan with a lower interest rate but very high fees might actually have a higher APR than a loan with a slightly higher interest rate and no fees.

By law, lenders must disclose the APR in loan agreements to ensure transparency. Our calculator simulates this legal disclosure by performing an internal rate of return calculation.

How To Use

Enter the **Loan Amount** (Principal).
Enter the stated **Interest Rate**.
Enter the **Loan Term** in years.
Enter the total **Upfront Fees** (points, origination fees, etc.).
The result will show you how much the fees increase your effective interest rate.

Frequently Asked Questions

How is APR different from interest rate?+

Interest rate is the cost you pay each year to borrow the money, expressed as a percentage. APR is the cost you pay for the loan each year *inclusive of fees*.

Which one should I look at when comparing loans?+

Look at the APR. It gives you a more complete picture of the loan’s cost. However, if you plan to pay off the loan very early, the impact of upfront fees (included in APR) might be higher than the APR implies.

Is APR Calculator free to use?+

Yes, APR Calculator on Matheric is completely free to use. We believe in accessible education and utility for everyone.

How accurate is APR Calculator?+

We use standard mathematical formulas and high-precision computing algorithms to ensure results for APR Calculator are accurate for academic and professional use.

Can I use APR Calculator on my phone?+

Yes! APR Calculator is fully responsive and optimized for all devices, including smartphones, tablets, and desktops.

Do you save my data?+

No. We prioritize your privacy. All calculations are performed in your browser or temporarily processed, and we do not store your personal input data.

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