APR Calculator

The APR is the interest rate that would produce your loan's cash flows if the fee were rolled into the rate. It answers a fairer question than the advertised nominal rate: what single annual rate, applied to the money you actually received, reproduces the payments you actually make?

Amount borrowedThe face value of the loan before fees.Upfront feeOrigination or closing fee deducted at the start.Monthly paymentThe fixed payment you make each month.Number of paymentsTerm in months.

APR (annual, nominal)

448.98%

Cash actually received: $9,800.00
Monthly rate: 37.41%
Total of payments: $12,000.00

Values update as you type. This calculator covers the single scenario its formula assumes — see Common Mistakes for what it leaves out.

The formula this calculator uses

Solve for i: P - F = sum of pmt / (1 + i)^k

P: Amount borrowed before fees
F: Upfront fee deducted at closing
pmt: Fixed monthly payment
APR: Annual percentage rate, the monthly IRR times 12

How to check the result by hand

1
Find the net amount received
Subtract the upfront fee from the amount borrowed. A 10,000 loan with a 200 origination fee puts 9,800 in your hands.
2
List the payment stream
Write down the fixed monthly payment for every month of the term.
3
Search for the monthly rate
Find the rate i that makes the payments discount back to exactly 9,800. There is no algebra for it, so a calculator iterates until the two sides match.
4
Annualise
Multiply i by 12 to express the result as an APR. If i turns out to be 0.006, the APR is 0.072, or 7.2%.

For worked examples, common mistakes and the limits of this formula, read the full How To Calculate APR page.