APR Calculator
Your interest rate isn't the whole story. See the real effective rate (APR) once fees are factored into a loan.
Loan details
Effective APR
Why is APR higher than my interest rate?
APR (annual percentage rate) rolls origination fees, closing costs, and other upfront charges into the cost of borrowing, spread across the loan term. Your interest rate only reflects interest - not fees. Because you're paying the same monthly payment on a loan amount effectively reduced by fees you paid upfront, the true cost of borrowing (the APR) is always equal to or higher than the stated interest rate whenever fees are involved.
FAQ
Should I compare loans by interest rate or APR?
APR is the better apples-to-apples comparison when loans have different fee structures, since it captures the total cost of borrowing, not just the interest.
Does a lower APR always mean a better loan?
Usually, but not always - APR calculations can treat one-time costs differently between lenders, and a loan you plan to pay off early may make upfront fees weigh more heavily than APR alone suggests.