APR Calculator
Estimate apr from the amount, rate, term, payment, and fees. Use this free apr calculator for fast, clear results with no signup required.
APR Calculator guide
What it is for
The APR Calculator estimates a financial outcome so you can compare scenarios before making a decision.
How it is calculated
The loan payment uses the nominal rate. A numerical search then finds the monthly rate whose payment present value equals principal minus lender fees; (1 + monthly rate)^12 − 1 annualizes it.
Assumptions
Taxes, fees, inflation, rate changes, and product terms are not included unless the inputs account for them.
Example
Worked example — Loan amount: $10000; Nominal annual interest rate: 6%; Lender fees: $300; Loan term (years): 5. APR (annualized IRR): 7.521467377%; Total lender fees: $300.
Limitations
The annualized result is an effective rate from a simplified cash-flow model. It does not guarantee the legally disclosed APR of a lender’s product; consult the lender’s official documents.
Public source: CFPB: Consumer Tools