APR Calculator

Calculate APR based on loan terms and fees.

How to Do It Manually

APR (Annual Percentage Rate) includes both the interest rate and fees, expressing the true annual cost of borrowing as a percentage.

APR = ((Fees + Interest) ÷ Principal) ÷ Loan Term in Days × 365 × 100
  1. Add all fees to the total interest paid over the loan life.
  2. Divide by the principal.
  3. Divide by the loan term in days.
  4. Multiply by 365 and then by 100 to get a percentage.

Frequently Asked Questions

Why is APR higher than the interest rate?

APR includes origination fees, points, and other costs not reflected in the base interest rate, making it a more complete cost measure.