APR Calculator — Annual Percentage Rate

Calculate the true annual cost of any loan with our free APR Calculator. Unlike the nominal interest rate, APR includes fees and gives you the complete picture — so you can compare loan offers accurately.

What Is APR?

APR (Annual Percentage Rate) is the true yearly cost of borrowing money, including not just the interest rate but also fees, points, and other charges. Federal law requires lenders to disclose APR so borrowers can make accurate comparisons.

Frequently Asked Questions

What is the difference between interest rate and APR?
The interest rate is the cost of borrowing the principal alone. APR includes the interest rate plus fees and other loan costs, expressed as a yearly rate — giving you the complete cost of the loan.

Is a lower APR always better?
Generally yes. A lower APR means less total cost over the life of the loan. Always compare APRs — not just interest rates — when evaluating loan offers.

Does APR apply to credit cards?
Yes. Credit card APR is the rate charged on unpaid balances. Unlike loan APR, it typically does not include fees like annual fees in the calculation.

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