APR Calculator
Calculate the Annual Percentage Rate (APR) for loans and credit cards. APR represents the true cost of borrowing, including interest and fees, expressed as an annual rate.
APR Results
Annual Percentage Rate:
0.00%
Total Interest Paid:
$0.00
Total Amount Paid:
$0.00
Loan Summary
Principal Amount:
$0
Total Fees:
$0
Finance Charge:
$0.00
APR Categories
Excellent (Credit Cards):
7-12%
Good (Personal Loans):
10-20%
Fair (Auto Loans):
4-8%
Poor:
20%+
Understanding APR (Annual Percentage Rate)
APR represents the true annual cost of borrowing money, expressed as a percentage. Unlike simple interest rates, APR includes all fees and charges associated with the loan, providing a more accurate picture of borrowing costs.
What APR Includes
- Interest Rate: The basic cost of borrowing money
- Origination Fees: Loan processing and underwriting fees
- Discount Points: Prepaid interest to lower the rate
- Closing Costs: Title fees, appraisal fees, and other closing expenses
- Prepaid Interest: Interest paid upfront for the loan period
APR vs. Interest Rate
Interest Rate
- Basic borrowing cost
- Doesn't include fees
- Used for loan comparisons
- Simple percentage
APR
- True cost of borrowing
- Includes all fees and charges
- Standardized comparison tool
- Required by law for disclosure
APR Categories by Loan Type
- Credit Cards: 7-25% (varies by card type and credit score)
- Personal Loans: 6-36% (unsecured loans)
- Auto Loans: 4-8% (secured by vehicle)
- Mortgages: 3-7% (secured by property)
- Student Loans: 4-8% (government-backed)
Factors Affecting APR
- Credit Score: Higher scores = lower APR
- Loan Term: Longer terms may have different APR calculations
- Loan Type: Secured vs. unsecured loans
- Market Conditions: Economic factors influence rates
- Lender Policies: Different lenders have different fee structures
Important: APR is required by law (Truth in Lending Act) to be disclosed for most consumer loans. It provides a standardized way to compare loan offers from different lenders.