APR Calculator
Calculate the Annual Percentage Rate on any loan, including fees and costs.
Loan details
Add the rate, term, and required fees to estimate the true borrowing cost.
Currency
Loan amount before fees.
The advertised annual interest rate.
Total repayment term.
Include origination or lender fees.
Required charges paid to borrow.
APR reflects the annualized borrowing cost.
APR
6.35%
1.35% higher than the stated interest rate.
Monthly payment
£299.71
£299.71 monthly payment equivalent.
Total interest
£789.52
Interest paid over the loan term.
Total fees
£200.00
2.00% of the loan amount.
Total repayment
£10,989.52
Scheduled payments plus required fees.
Amount received
£9,800.00
Loan amount minus upfront fees.
Support
Finance support layer
APR estimate
APR is estimated from the loan amount, stated rate, term, payment frequency, and required fees entered.
Borrowing cost context
APR helps compare similar loan offers, but final loan terms, rules, and fee treatment may vary.
Fee-aware comparison
Required fees can make a loan more expensive even when the advertised interest rate looks lower.
Interpretation
What these APR results mean
APR vs stated rate
Your estimated APR is 6.35%, compared with a stated interest rate of 5.00%.
Fee impact
Required fees total £200.00, which is about 2.00% of the loan amount.
Repayment estimate
The estimated total repayment is £10,989.52 over 36 monthly payments.
Cost per amount received
Based on amount received after fees, the total cost is approximately 12.14% before optional costs.
APR basics
How APR works
Annualized cost
APR expresses borrowing cost as an annual percentage so loan offers are easier to compare.
Interest plus fees
APR usually includes interest and required finance charges such as origination or lender fees.
Term matters
The same fee can create a higher APR on a short loan than on a longer loan.
Compare similar loans
APR works best when comparing loans with similar terms, repayment schedules, and fee structures.
Comparison
APR vs interest rate
Interest rate
5.00%
The interest rate is the advertised yearly cost of borrowing the principal before certain fees are included.
APR
6.35%
APR includes the interest rate plus required finance charges, making it a broader borrowing-cost measure.
Fees
How fees affect APR
Lower rate with higher fees
- Rate
- 4.50%
- Fees
- £400.00
- APR
- 7.24%
A lower advertised rate can still produce a higher APR if required fees are large.
Higher rate with lower fees
- Rate
- 5.35%
- Fees
- £50.00
- APR
- 5.69%
A slightly higher rate may be competitive when upfront fees are much lower.
Loan types
Common APR use cases
Personal loans
Compare offers with different origination fees and repayment terms.
Mortgages
Understand how closing costs and lender fees affect the advertised borrowing cost.
Auto loans
Compare financing offers beyond the monthly payment alone.
Credit cards
Understand the annualized cost of balances that carry interest.
Student loans
Review the effect of fees and interest rate assumptions.
Business loans
Estimate how fees and repayment schedule affect financing cost.
Formula
APR formula explanation
Periodic payment
Payment = P × r × (1 + r)^n / ((1 + r)^n − 1)The scheduled payment is estimated from the loan amount, periodic rate, and number of payments.
Net amount received
Net Amount = Loan Amount − Required FeesAPR uses the amount effectively received after upfront required fees.
APR estimate
APR = Periodic Cost Rate × Payments Per YearThe calculator solves for the periodic rate that matches the payment stream, then annualizes it.
FAQ
APR calculator questions
APR stands for Annual Percentage Rate. It estimates the yearly cost of borrowing after accounting for interest and certain required loan fees.
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