APR Calculator & Loan Estimator
Instantly calculate the true Annual Percentage Rate (APR) of your loan. Free, accurate tool that factors in interest rates and upfront fees for mortgages, auto loans, and personal loans.
Calculate Your True APR
Enter your loan details below to get an instant, precise calculation of your monthly payment, total interest, and the true Annual Percentage Rate (APR) including fees.
Loan Details
Enter your loan parameters to see the true cost of borrowing
Loan Breakdown
Calculated financial equivalents
Common Loan Scenarios
Typical loan examples showing how upfront fees impact the true APR compared to the base interest rate.
| Loan Type | Amount | Base Rate | Fees | True APR |
|---|---|---|---|---|
| 30-Year Mortgage | £300,000 | 6.50% | £5,000 | 6.73% |
| 5-Year Auto Loan | £25,000 | 5.00% | £500 | 5.38% |
| Personal Loan | £10,000 | 8.00% | £300 | 8.52% |
| 15-Year Mortgage | £200,000 | 5.75% | £4,000 | 6.05% |
| Student Loan | £15,000 | 4.50% | £0 | 4.50% |
APR Calculation FAQ
Everything you need to know about calculating APR and understanding the true cost of borrowing.
The Annual Percentage Rate (APR) is the yearly cost of a loan, expressed as a percentage. Unlike the simple interest rate, APR includes the interest rate plus any upfront fees, points, or additional costs associated with securing the loan, giving you a truer picture of the total borrowing cost.
The interest rate is the cost of borrowing the principal loan amount, expressed as a yearly percentage. APR is broader: it includes the interest rate plus any lender fees, origination charges, or closing costs. Therefore, the APR is almost always higher than the base interest rate.
Upfront fees reduce the actual amount of money you receive from the loan (the financed amount) while your monthly payments remain based on the full principal. This effectively increases the true cost of borrowing, which is reflected as a higher APR.
A lower APR means the total cost of borrowing is lower. When comparing loan offers from different lenders, the APR is the most reliable metric to use because it accounts for both the interest rate and the fees, allowing for an apples-to-apples comparison.