Find the true APR of a loan after upfront fees and discount points.
APR = the rate at which the payments’ present value equals the loan amount minus upfront fees and points.
Please do not make financial decisions based on these results.
What is the APR Calculator?
APR (annual percentage rate) expresses the true yearly cost of a loan, including upfront fees and discount points, not just the interest rate.
Understanding home financing
Buying or financing a home involves a handful of numbers that interact: the price, the down payment, the interest rate, the loan term and the ongoing costs of ownership. The mortgage calculator combines them into a monthly payment, while the amortization calculator shows how each payment is split between interest and principal.
Costs beyond the loan
Property taxes, homeowners insurance, mortgage insurance, association dues and maintenance all add to the monthly cost of owning. Lenders also look at your debt-to-income ratio and your savings, so check what you can afford with the house affordability calculator before you start house hunting.
Changing the loan later
Once you own, you may want to lower the rate, shorten the term or borrow against your equity. The refinance calculator and the mortgage payoff calculator help you compare those choices with the loan you already have.
How to use the APR Calculator
- Fill in the fields. You will need Loan amount ($), Interest rate (% per year), Loan term: years, Upfront fees: origination, processing, etc. ($). Use figures from a lender quote or your tax bill where you have them, and keep the term and rate realistic. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the APR, and the cards below show Interest rate, Monthly payment, Amount financed (net). Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the APR Calculator using the default values shown in the calculator above:
Inputs
| Loan amount ($) | 250,000 |
|---|---|
| Interest rate (% per year) | 6.5 |
| Loan term: years | 30 |
| Upfront fees: origination, processing, etc. ($) | 3,000 |
Results
| APR | 6.62% |
|---|---|
| Interest rate | 6.5% |
| Monthly payment | $1,580.17 |
| Amount financed (net) | $247,000.00 |
| Total finance charges | $321,861.22 |
| Total of payments | $568,861.22 |
With these inputs the calculator returns APR: 6.62%. Change any value in the calculator to see how the result moves.
What the results tell you
The results panel of the APR Calculator reports APR, interest rate, monthly payment, amount financed (net), total finance charges and total of payments. Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Tips for better results
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. The result is only as accurate as the numbers you enter and the formula shown above. It is for information, not financial, tax or legal advice.
Frequently asked questions
Why is APR higher than the interest rate?
Because upfront fees raise the effective cost of borrowing.
Does APR include closing costs?
Only the finance charges you enter, such as origination fees and points. Lenders often exclude appraisal and title fees.
What is included in a monthly mortgage payment?
Principal and interest, plus property tax, homeowners insurance, PMI if your down payment is under 20%, and HOA fees if they apply.
How much house can I afford?
A common rule is to keep housing costs under about 28% of gross income and total debt under 36%. The House Affordability Calculator applies those limits to your numbers.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
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- Mortgage Rate Calculator
- Mortgage Payoff Calculator
- Rent Calculator
- FHA Loan Calculator
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- Interest-Only Mortgage Calculator
- ARM Mortgage Calculator
- AFFO Calculator — Adjusted Funds From Operations
- Net Effective Rent Calculator
- Rent Increase Calculator
- True Cost of Real Estate Commission Calculator
All Mortgage & Real Estate calculators →
Guides that use this calculator
- Mortgage Refinance Break-Even Point: Is It Worth It?
- Is Debt Consolidation Worth It? A $18,000 Credit Card Example
- Personal Loan vs Credit Card: Which Costs Less for a Big Expense?
- Mortgage Discount Points: When Is Paying for a Lower Rate Worth It?
- APR vs APY: What’s the Difference and Why It Matters for Loans and Savings