Annual Percentage Rate (APR) vs Interest Rate Calculator
Calculate the true APR of any loan including upfront origination fees, closing costs, and discount points.
🌍 Select Currency / Region:
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%
$
True Effective APR
6.71%
Nominal Rate
6.50%
Monthly Payment
$1,264.14
About APR Calculator - True Annual Percentage Rate Estimator
Annual Percentage Rate (APR) reflects the true annual cost of borrowing by factoring upfront origination fees and points into the interest rate.
💡 How to Use This Calculator
- Enter total loan amount, nominal interest rate, term, and upfront fees.
- Compare stated rate against true APR.
⚡ Key Features & Considerations
🔍 Truth-in-Lending Engine
Uses Newton-Raphson iteration to calculate exact APR.
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Frequently Asked Questions
Why is APR higher than the interest rate?
APR incorporates upfront fees (origination points, underwriting fees) amortized over the loan term.