Financial Calculators
APR Calculator
Calculate APR for loans including fees. Compare with nominal rate.
What is the APR Calculator & How does it work?
The Annual Percentage Rate (APR) is a comprehensive measure of the cost of borrowing that includes interest and any additional fees. It provides a more accurate picture than the nominal interest rate, which only reflects the interest charged on the principal amount.To calculate APR, you need to consider the total finance charge (interest plus fees) over the life of the loan and divide it by the average balance of the loan. This formula helps consumers understand the true cost of a loan and compare different financing options effectively.
APR = \left(\frac{Total Finance Charge}{Principal} \times \frac{365}{Loan Term}\right) \times 100
APR = Annual Percentage Rate, Total Finance Charge = Interest + Fees, Principal = Initial loan amount, Loan Term = Duration in days
Parameters
USD
Years
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USD
APR
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Monthly Payment
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Results are for informational purposes only and do not constitute professional advice.