APR Calculator
Two loans with the same rate can cost very different amounts once fees are included. APR rolls those fees into the rate.
6.960% APR
- Note rate
- 6.760%
- Monthly payment
- $1,947.79
APR folds financed fees into the rate so loans with different fees compare fairly.
How it works
APR is solved numerically: it's the rate at which the amount actually advanced — the loan minus financed fees — amortises to the real monthly payment.
Frequently asked questions
What's the difference between the note rate and APR?
The note rate is what your monthly payment is based on. APR restates the loan's true cost by treating financed fees as if they were extra interest, spread over the term — it's almost always higher than the note rate whenever fees are financed.
How is APR calculated here?
APR is solved numerically: it's the annual rate at which the amount you actually receive (the loan minus financed fees) would need to be charged to produce the same monthly payment as your note rate on the full loan amount.
Should I compare loans by rate or APR?
APR, when the fees you're comparing are genuinely similar in kind — it's designed to let you compare offers with different fee structures on equal footing. Just be aware it assumes you keep the loan for its full term; APR understates the cost of fees if you refinance or pay off early.
Do all fees count toward APR?
Federal rules define which fees are 'finance charges' that must be included (like origination and discount points) versus which are excluded (like a typical appraisal or title fee). This calculator lets you enter the financed-fee total directly so you can match a specific Loan Estimate's APR box.