APR Calculator

About APR Calculator

Our free APR (Annual Percentage Rate) calculator helps you understand the true cost of borrowing money. APR includes not only the interest rate but also additional fees and costs associated with the loan, giving you a more accurate picture of what you'll actually pay.

This tool is essential for comparing different loan offers, credit cards, and financing options to make informed financial decisions and find the best deal for your situation.

How to Use the APR Calculator

1. Enter Loan Amount: Input the total amount you want to borrow
2. Set Interest Rate: Enter the annual interest rate offered by the lender
3. Choose Loan Term: Input the loan duration in years
4. Calculate: Click calculate to see your APR and understand the true cost
5. Compare Options: Use different scenarios to compare loan offers
6. Make Decisions: Choose the loan with the lowest APR for the best deal

APR Understanding Tips

• APR vs Interest Rate: APR includes fees and gives the true cost, while interest rate is just the base rate
• Compare APRs: Always compare APRs when shopping for loans, not just interest rates
• Lower is Better: A lower APR means you'll pay less over the life of the loan
• Read the Fine Print: Make sure you understand all fees included in the APR
• Credit Score Impact: Better credit scores typically qualify for lower APRs
• Shop Around: Different lenders offer different APRs for the same loan type
• Consider All Costs: APR helps you see the total cost of borrowing money

Important APR Information

What's Included in APR: Interest rate, origination fees, discount points, and other lender fees are typically included in APR calculations.

What's Not Included: Some fees like appraisal fees, credit report fees, and title insurance may not be included in APR.

Legal Requirement: Lenders are required by law to disclose APR, making it easier to compare loan offers fairly.