APR Calculator (Including Fees)

Find a loan’s true annual percentage rate once origination fees and points are counted.

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Origination, points, and other lender fees you pay up front.
Fractions and decimals both work.
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APR
Monthly payment
Amount financed
Total finance charge
APR above note rate
Excel check
Total of Payments

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How APR Includes Fees

The annual percentage rate (APR) spreads up-front finance charges over the life of the loan. You make the same payments as on the full loan, but you effectively received less money (the loan minus the fees), so the true rate is higher than the note rate.

Payment = PMT(note rate ÷ 12, months, loan amount)
APR = 12 × the monthly rate that makes the payments worth (loan − fees) today

This is Excel's RATE(months, −payment, loan − fees) × 12, solved by iteration. It follows the actuarial method in the Truth in Lending Act (Regulation Z) for a standard fixed-rate loan with regular monthly payments.

Worked Example

Tips

Which fees count as finance charges is set by Regulation Z: lender origination fees and points usually do; appraisal, title and recording fees usually don't. Because fees are spread over the full term, APR overstates the cost if you'll sell or refinance early. Compare APRs only between loans with the same term.