APR Calculator

Understanding APR

Annual Percentage Rate (APR) represents the true cost of borrowing by including both the interest rate and additional fees. It helps you compare different loan offers on an equal basis, even when they have different fee structures.

Common Loan Fees

Origination Fees

Charged by lenders for processing new loan applications

Application Fees

Covers the cost of processing your application and credit check

Broker Fees

Paid to mortgage brokers for finding and arranging your loan

Points

Optional upfront fees paid to reduce your interest rate

APR vs. Interest Rate

Interest rate only shows the cost of borrowing the principal
APR includes both the interest rate and other loan costs
APR is typically higher than the interest rate
APR provides a more accurate picture of total loan costs
Required by law to be disclosed to borrowers
Helps compare loans with different fee structures

Tips for Evaluating Loans

Compare APRs from multiple lenders
Ask for a breakdown of all fees
Consider how long you plan to keep the loan
Look at both monthly payments and total cost
Understand which fees are negotiable
Check if fees can be rolled into the loan

Loan Details & Fees

Fees and Charges

APR Analysis