APR Calculator

  • Enter the loan amount, annual interest rate, and loan term (in months).
  • Click "Calculate APR" to calculate the APR and see the results.
  • View the monthly payment, total payment, total interest, and APR.
  • Check the payment breakdown and detailed calculation below.
  • Your calculation history is displayed in the "Calculation History" section.
  • Click "Clear Inputs" to reset the inputs, and "Clear History" to clear the history.
Payment Breakdown:
Calculation Details:
Amortization Schedule:
MonthStarting BalancePrincipal PaymentInterest PaymentTotal PaymentEnding Balance
Calculation History:

    What is Annual Percentage Rate?

    The Annual Percentage Rate (APR) is a standardized way of expressing the true cost of borrowing money or the effective interest rate on a loan or credit card over a one-year period. It is expressed as a percentage and includes not only the nominal interest rate but also other associated fees and costs that borrowers may incur.

    The APR is designed to give borrowers a more comprehensive understanding of the total cost of a loan or credit product, making it easier to compare different lending options. It is required by law in many countries, including the United States, to be disclosed to borrowers before they commit to a loan or credit agreement.

    All Formulae Related to Annual Percentage Rate

    1. APR Calculation with Simple Interest:
      • APR = (Total Interest Paid / Principal Loan Amount) * (365 / Number of Days in Loan Term) * 100
    2. APR Calculation with Compound Interest:
      • APR = ((1 + (Nominal Interest Rate / Number of Compounding Periods Per Year))^(Number of Compounding Periods Per Year * Loan Term in Years) – 1)
    3. Effective APR Calculation with Fees and Costs:
      • Effective APR = (Total Cost of Loan, including fees / Principal Loan Amount) * (365 / Number of Days in Loan Term) * 100
    4. Credit Card APR Calculation (Monthly Periodic Rate):
      • APR = (Monthly Periodic Rate * 12) * 100
    5. APR Calculation for Mortgage Loans:
      • APR = (Total Cost of Loan, including points, fees, and interest / Principal Loan Amount) * (365 / Number of Days in Loan Term) * 100


    1. Personal Finance:
      • Loan Comparison: Individuals can use an APR calculator to compare the costs of different loan offers, such as personal loans, auto loans, and mortgages, to find the most cost-effective option.
      • Credit Card Analysis: Consumers can determine the APR on credit cards and evaluate the impact of varying interest rates on credit card balances.
    2. Banking and Financial Services:
      • Loan Origination: Banks and lenders utilize APR calculators to determine the APR for loans they offer to clients.
      • Investment Analysis: Financial institutions assess the APR for investment products like certificates of deposit (CDs) or bonds to determine their attractiveness to investors.
    3. Real Estate:
      • Mortgage Loans: Homebuyers and real estate professionals use APR calculators to understand the true cost of a mortgage, including interest and fees.
      • Rental Property Analysis: Real estate investors assess financing options and calculate APR to evaluate the profitability of rental properties.

    Benefits of Using the Annual Percentage Rate Calculator

    Here are some of the key advantages of using an APR calculator:

    1. Accurate Cost Assessment: An APR calculator provides a precise and standardized way to determine the true cost of borrowing or financing. It includes not only the nominal interest rate but also associated fees and charges, giving a comprehensive view of the financial commitment.
    2. Comparison of Loan Offers: Borrowers can use an APR calculator to compare multiple loan or credit card offers from different lenders. This enables borrowers to identify the most cost-effective option and choose loans with lower APRs.
    3. Informed Decision-Making: Using an APR calculator empowers borrowers to make informed financial decisions. It helps them understand the long-term financial implications of loans and credit products, aiding in responsible borrowing.
    4. Transparency: APR calculators promote transparency in lending by ensuring that all costs associated with a loan are considered in the calculation. This transparency benefits consumers and helps prevent hidden fees or deceptive lending practices.
    5. Financial Planning: Individuals can use APR calculators to plan their finances better. By knowing the total cost of loans and credit cards, borrowers can budget for payments more effectively and avoid overextending themselves financially.

    Last Updated : 27 February, 2024

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    20 thoughts on “APR Calculator”

    1. The breakdown of APR calculation formulae and their applications is very informative. It provides clarity on how the APR is determined and its significance in different financial contexts.

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