Loan Calculators
APR Calculator
Convert an interest rate plus fees into an annual percentage rate so two loan offers can be compared on the same basis.
Effective APR
9.8%
- Monthly payment
- $410.33
- Cash you actually receive
- $19,400
- Total cost of credit
- $5,220
How this calculator works
APR solves: net advance = Σ payment ÷ (1 + apr/12)^t
- net advance
- the loan amount minus fees deducted at the start
- payment
- the contractual monthly payment
Example calculation
Illustrative example — not advice
Worked example — the apr calculator as it loads, using the default figures below.
- 01Enter loan amount: $20,000.
- 02Enter nominal interest rate: 8.5%.
- 03Enter term: 5 years.
- 04Enter fees added upfront: $600.
- 05Read the effective apr from the results panel: 9.8%.
Effective APR: 9.8%. Monthly payment: $410.33. Cash you actually receive: $19,400. Total cost of credit: $5,220.
These figures come straight from the calculator above running on the values listed, so you can retype them and confirm every number yourself. Change any input and the results update immediately. Illustrative only — not a quote, offer or recommendation.
Important considerations
- APR assumes you keep the loan for the full term.
- Different jurisdictions include different fees in the statutory APR.
Related calculators
- Loan Payment CalculatorMonthly repayment, total interest and the effect of paying extra each month.
- Interest Rate CalculatorThe implied rate behind a known payment.
- Personal Loan CalculatorRepayments and total interest on an unsecured personal loan.
- Effective Interest Rate CalculatorEffective annual rate for any compounding frequency.
- Student Loan CalculatorStudent loan repayments, interest and payoff timing.
- Loan Interest CalculatorTotal interest cost across the life of a loan.
Terms used here
Frequently asked questions
Why is APR higher than the interest rate?
Because fees are spread across the term as if they were extra interest.
Disclaimer
Legamoney calculators are educational tools. Results are estimates based on the figures you enter and do not constitute financial, tax or legal advice.
Last reviewed 2026-08-01