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APR & True Loan Cost Calculator

Go beyond the stated interest rate. Add points, origination charges, and other prepaid finance charges to estimate APR, net loan proceeds, total interest, and the true dollar cost of borrowing.

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Your calculated results

The sample values calculate automatically. Change any input to evaluate your own scenario.

This calculator produces a mathematical APR estimate, not a regulatory disclosure. Truth in Lending and mortgage APR calculations can depend on which charges are finance charges, payment timing, odd periods, insurance, and other contract-specific details.

Rate versus real cost

Two loans with the same note rate can have different APRs

The note rate determines the contractual interest used to calculate the scheduled payment. APR is a broader rate measure because certain upfront finance charges reduce the amount of credit the borrower effectively receives while the scheduled payments remain based on the note principal.

Amount financed = Note principal − Prepaid finance charges

The calculator solves for the periodic discount rate that makes the present value of the scheduled payment stream equal the amount financed.

Use the dollar results too

APR is useful for comparison, but the calculator also shows net proceeds, total note interest, prepaid charges, and total borrowing cost. Those dollar amounts can make the effect of points and lender fees easier to understand.

Need the complete payment schedule?

Amortization Pro creates full payment-by-payment schedules and lets you save, edit, print, and export loan calculations.

View Amortization ProBuy for $25

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Frequently asked questions

Why can APR be higher than the note rate?

APR reflects the timing of scheduled payments relative to the amount of credit actually available after included finance charges. Points and certain upfront charges can therefore raise the estimated APR.

Does this calculate an official Truth in Lending APR?

It is a mathematical estimate using equal periodic payments and charges entered as prepaid finance charges. Official disclosures can depend on fee classification, odd days, irregular periods, mortgage-insurance rules, and regulatory rounding.

What happens if I enter no fees?

With level payments and regular periods, the estimated nominal APR should be essentially the same as the stated nominal note rate.

How are points calculated?

One point equals one percent of the entered loan amount. Points are treated as upfront finance charges in this calculator.