APR Calculator

Convert a loan's rate and fees into its true APR.

APR Calculator

Enter your values and calculate

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How This Calculator Works

APR reflects the true yearly cost of a loan by including upfront fees. The calculator finds the rate that makes the present value of your payments equal to the net amount you actually receive (loan minus fees).

Formula

Solve r where: net = PMT × [1 − (1+r)^−n] / r

Example

A $20,000 loan at 8% with $500 in fees over 5 years has an APR of about 9.1% — higher than the nominal rate.

Practical Use Cases

  • Comparing loan offers
  • Understanding fee impact
  • Truth-in-Lending checks
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