APR Calculator
Calculate the true annual percentage rate on a loan including fees. Free APR calculator showing total cost, monthly payment and the fee impact.
About the APR Calculator
APR — annual percentage rate — is the real yearly cost of borrowing once upfront fees are folded into the interest rate. This free APR calculator takes your loan amount, the nominal interest rate, any fees and the term, then solves for the APR that makes the discounted payments equal the amount you actually receive after fees.
The nominal rate alone can be misleading: a 10% loan with 3,000 of processing fees on 100,000 costs more than a fee-free 10% loan, so its APR is higher. The calculator shows the monthly payment, the total amount repaid and the APR side by side, so you can compare offers on a like-for-like basis instead of trusting the headline rate.
Borrowers comparing personal loans, car loans and mortgages across Pakistan, India and worldwide use APR because lenders quote fees differently. Everything runs in your browser — no signup, no data leaves your device.
How to Use the APR Calculator
- 1Enter the loan amount, the nominal annual interest rate and the term in months or years.
- 2Add any upfront fees (processing, origination, documentation).
- 3Read the APR, monthly payment and total cost instantly.
- 4Compare the APR against other offers to find the cheapest loan.
Frequently Asked Questions
What is the difference between APR and interest rate?
The interest rate is the cost of the money alone; APR adds mandatory fees on top and expresses the total as a yearly percentage. A 10% loan of 100,000 with 3,000 in fees has an APR closer to 11.3%, because you effectively borrow 97,000 but repay as if you borrowed the full amount at 10%.
How is APR calculated?
The calculator finds the rate that discounts every monthly payment back to the net amount you receive (loan minus fees). It solves this numerically because the equation cannot be rearranged for the rate directly, then annualises the monthly rate.
Is a lower APR always better?
For a fixed loan amount and term, yes — a lower APR means a lower total cost. Be careful comparing loans of different terms: a longer term can have a lower monthly payment but a higher total interest cost even at the same APR.
Do all fees count towards APR?
APR includes fees that are a condition of the loan, such as origination or processing charges. Optional costs like late-payment penalties or insurance you could buy elsewhere are usually excluded. Enter only the mandatory upfront fees for an accurate figure.