Loan APR
Calculate Loan APR instantly with the exact formula and a worked example.
Loan APR
Loan amount$
Nominal annual rate%
Loan termmonths
Upfront fees and insurance$
Annual percentage rate (APR)
17.1701%
Monthly payment
17333$
Effective annual rate (compounded)
18.59%
Interest plus fees
138976$
More about: Loan APR
What it calculates
The “Loan APR” calculator computes Annual percentage rate (APR) in % from 4 parameters: loan amount ($), nominal annual rate (%), loan term (months), upfront fees and insurance ($).
Useful when choosing a loan, working out the payment, estimating the total cost, and comparing options.
Example calculation
With parameters Loan amount = 500,000 $, Nominal annual rate = 15 %, Loan term = 36 months, Upfront fees and insurance = 15,000 $ the result is 17.17 %.
How to use
- Enter loan amount, nominal annual rate, loan term and upfront fees and insurance — each field above is adjustable with a slider.
- Annual percentage rate (APR) (%) is calculated automatically as you type.
- Check the worked example below to see the formula applied to real numbers.
- Copy the result or bookmark this calculator.
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FAQ
How is the monthly loan payment calculated?
With the amortization formula: P = S · (i · (1+i)^n) / ((1+i)^n − 1), where S is the loan amount, i is the monthly interest rate (annual rate / 12 / 100), and n is the number of months. This produces equal monthly payments over the full term.
What is APR and how does it differ from the interest rate?
APR (Annual Percentage Rate) reflects the total yearly cost of the loan including the interest rate plus most fees (origination, processing). It is usually higher than the nominal interest rate and is the most reliable number for comparing loan offers.
Can I pay off a loan early without penalty?
Most consumer loans in the US allow early payoff. A few lenders charge a prepayment penalty, so check your loan agreement. Paying extra toward principal reduces the total interest you pay over the life of the loan.
What affects the total interest I pay?
The loan amount, the interest rate, and the term. A longer term lowers the monthly payment but increases total interest. A shorter term costs more per month but far less overall.
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