Loan Calculator with APR
True annual cost including the fee.
Effective-APR math computed locally — your numbers stay localYour payment breakdown appears here
Fill in the loan details and press Calculate — the monthly payment, total interest and schedule will render right on this page, with nothing sent to any server.
How to use
The quoted rate hides upfront fees. The effective APR spreads those fees across the loan and expresses the true annual cost — the only number that lets you compare loans fairly when fees differ.
How to use
- Enter the loan amount, the upfront fee, the nominal APR and the term.
- Press Calculate to see the effective APR next to the nominal rate.
Example
A $20,000 loan at a nominal 6% with a $500 upfront fee over 5 years has a payment of about $387. The effective APR comes to roughly 7.3% — the fee raised the real cost by more than a point. Skip the fee and the effective APR equals the nominal 6%.
Formula
The calculator solves the monthly rate i from (1+i)^n = 1 + i·n·payment/(loan − fee) by bisection, then converts to an annual figure: effective APR = (1+i)^12 − 1. The nominal rate stays as quoted; the effective rate reflects the fee.
Why APR matters
Two loans with the same nominal rate can cost very differently once fees are added. APR exists to surface that difference — it is the number lenders are required to advertise for that reason.
Fee-heavy products
On short or small loans a flat fee can produce a startling effective rate. A $300 fee on a $2,000 1-year loan at 10% nominal works out to an effective APR above 50% — the kind of math payday-style products rely on.
Where to find the fee
Origination fees appear on the loan estimate and the closing disclosure. If a lender will not state the fee in dollars up front, treat the quoted rate with extra suspicion — the APR tool lets you test what a hidden fee would do to the effective cost.
FAQ
Why APR, not just the rate?
APR folds fees into the annual cost so you can compare loans fairly across lenders.
Big fee, big gap?
Yes — a large origination fee lifts the effective rate well above nominal, especially on short or small loans.
What if there is no fee?
The effective APR equals the nominal rate — the two lines in the result will match.
How is this different from the fee tool?
The fee tool rolls the fee into the payment; this tool expresses the fee as the effective annual rate.
Reviewed by the LoanMath editorial team