APR Calculator
Calculate the true APR on a loan including origination and upfront fees. Compare borrowing offers on equal footing before consolidating or refinancing.
Why Stated Rate and Effective APR Are Different
Lenders advertise attractive interest rates — but upfront fees can make the true cost significantly higher. A personal loan at 9.99% with a $500 origination fee costs more than the same loan at 10.5% with no fees. The effective APR captures this difference.
This APR calculator computes the true annual percentage rate including fees. Enter the loan amount, stated rate, fees, and term to see what you're really paying — and to compare offers on equal footing.
This matters most when shopping consolidation loans, where origination fees of 1–8% are common. A consolidation that lowers your stated rate but charges 5% upfront may not save as much as it appears — run the numbers here before committing.
Always compare effective APR, not just monthly payment or stated rate. Pair this tool with the Debt Consolidation and Refinance calculators to make borrowing decisions that genuinely reduce interest and move you toward debt freedom.
How These Calculations Work
Transparent methodology — no black boxes. Here's exactly what happens when you use this calculator.
- 1
Enter loan amount, stated APR, upfront fees, and term.
- 2
Net proceeds = loan amount minus fees (what you actually receive).
- 3
Effective APR is the rate that equates payment on net proceeds to stated terms.
- 4
Compare effective APR across offers — lower is better.
- 5
Use with consolidation and refinance calculators for complete analysis.
Frequently Asked Questions
Effective APR is the true annual cost of borrowing including upfront fees, not just the stated interest rate.
A $500 origination fee on a $20,000 loan means you receive less than $20,000 but pay interest on the full amount — raising your true cost.
We find the rate that produces the same payment on net proceeds (loan amount minus fees) as the stated rate on the full amount.
Always — when shopping personal loans, consolidation offers, auto financing, or any loan with origination or processing fees.
Choosing the lowest effective APR when consolidating or refinancing directly reduces total interest and accelerates debt freedom.