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APR Calculator

Calculate the annual percentage rate for any loan including fees.

⚡ Instant results🔒 Private — runs locally🆓 Free forever🚫 No signup

APR Calculator

Calculate the annual percentage rate for any loan including fees.

⚡ Instant🔒 Private🆓 Free🚫 No signupFinancially accurate
$
%
years
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Simple & Compound Interest

Simple: I = P × r × t Compound: A = P × (1 + r)ᵗ
I = Interest earned (simple)
P = Principal amount
r = Annual interest rate (decimal)
t = Time in years
A = Final amount (compound)

ℹ️ Compound interest earns significantly more than simple interest over long periods

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Disclaimer

Results provided by this calculator are for informational and educational purposes only. They are based on the values you enter and standard formulas, and should not be considered financial, medical, legal, or professional advice. Always consult a qualified professional before making important decisions based on these results. Roughtools makes no warranties regarding the accuracy or completeness of these calculations for your specific situation.

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Frequently Asked Questions

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Pro Tips

1

Compound interest is asymmetric: it helps you dramatically as an investor, but hurts you dramatically as a borrower on high-rate debt. Eliminate high-rate debt first.

2

The effective annual rate (EAR) is always higher than the nominal rate when compounding is more frequent than annually. Monthly compounding at 6% nominal = 6.17% EAR.

3

Comparing investments with different compounding frequencies? Convert all to Effective Annual Rate first for a true apples-to-apples comparison.

4

High-yield savings accounts and CDs often advertise APY (annual percentage yield), which is the EAR — it accounts for compounding. Lower APR means less interest paid on loans.

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When to Use This Calculator

💰Savings account comparison

Compare interest earned between accounts with different rates to pick the best place for your emergency fund.

📈CD and bond analysis

Calculate exact interest earned on a certificate of deposit or bond before locking in your money.

🏦Loan interest cost

See the total interest you will pay over the life of any loan — a figure lenders often don't highlight upfront.

🔄Simple vs compound comparison

Visualise the difference between simple and compound interest over time to understand why compound matters.

📊Investment return projection

Estimate final value of an investment given an assumed interest rate and time horizon.

About the APR Calculator

This APR calculator computes the Annual Percentage Rate — the true all-in cost of borrowing — by incorporating both the nominal interest rate and all fees (origination, points, closing costs) into a single standardized annual percentage. Compare loans with different fee structures apples-to-apples by comparing APRs rather than just interest rates. Built for mortgage shoppers, auto loan borrowers, and anyone comparing loan offers.

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How to Use the APR Calculator

  1. 1

    Enter the loan amount and the nominal interest rate quoted by the lender.

  2. 2

    Enter all upfront fees: origination fee, points, closing costs (in dollars).

  3. 3

    Enter the loan term in months.

  4. 4

    See the calculated APR — the true cost of the loan including all fees.

  5. 5

    Compare APRs across multiple lender offers to find the cheapest option.

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