Free APR Calculator - Know the True Cost of Borrowing
Calculate APR including all fees to understand real loan costs. Best free APR calculator 2025 - compare loan offers accurately with true annual percentage rate.
Quick Answer
APR (Annual Percentage Rate) represents the true yearly cost of borrowing, including interest rate plus fees. Unlike the interest rate alone, APR includes origination fees, points, and other costs. Use our APR calculator at practicalwebtools.com to compare loan offers accurately - a lower interest rate with high fees can have a higher APR than a higher rate with low fees.
Key Facts about APR Calculator:
- APR includes interest rate plus fees (origination, points, closing costs)
- Lenders are required by law (TILA) to disclose APR
- APR allows accurate comparison of different loan offers
- A loan with lower interest but higher fees may have higher APR
- Mortgage APR includes discount points, origination fees, and PMI
- Credit card APR is the annualized interest rate (usually no additional fees)
- Effective APR accounts for compounding within the year
Why Use Our APR Calculator?
Understand true borrowing costs:
True Cost Calculation
Calculate APR including all fees and costs.
Loan Comparison
Compare offers with different rate/fee combinations.
Fee Breakdown
See how fees affect your effective rate.
Detailed Analysis
Understand each component of your APR.
Instant Results
Get your APR calculation immediately.
Private & Secure
Your loan details stay on your device.
How to APR Calculator in 3 Easy Steps
Calculate your true APR:
Enter Loan Details
Amount, interest rate, and term.
Add Fees
Include origination fees, points, and other costs.
See True APR
View the real annual cost of your loan.
Compare Loans Accurately
See the true cost of borrowing beyond interest rate
Compare loan offers fairly and accurately
Avoid deceptive "low rate" offers with high fees
Make informed borrowing decisions
Common Use Cases for APR Calculator
Essential for:
Frequently Asked Questions
Everything you need to know about our apr calculator
What is APR?
Yearly borrowing cost including interest rate plus fees - true loan cost.
APR (Annual Percentage Rate) is the yearly cost of borrowing expressed as a percentage, including both the interest rate and fees. It represents the true cost of a loan better than interest rate alone.
What is the difference between APR and interest rate?
Interest rate is just interest; APR includes interest plus all fees.
Interest rate is only the cost of borrowing the principal. APR includes interest rate plus fees (origination, points, closing costs), giving a complete picture of borrowing cost.
Which loan is better: lower rate or lower APR?
Compare APR - it shows true cost including all fees.
Compare APR, not just interest rate. A 6% rate with 2% fees may have higher APR than 6.5% with no fees. APR shows true cost if you keep the loan full term.
Why is my mortgage APR different from the interest rate?
APR includes points, origination fees, PMI, and closing costs.
Mortgage APR includes discount points, origination fees, mortgage insurance (PMI), and other closing costs, making it higher than the base interest rate.
What is a good APR?
Depends on loan type - compare to current market rates for your credit tier.
Good APR depends on loan type and credit. Mortgages: 6-8% currently, Personal loans: 7-15% for good credit, Credit cards: 15-20% is average. Compare to current market rates.
Still have questions? Try the tool yourself!
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