OmniCalcsAPR Calculator
See the true annual percentage rate once loan fees and points are included.
How to Use This APR Calculator
Enter the loan amount, the advertised interest rate, the term and any fees or points. The calculator solves for the rate that reflects both the interest and the cost of the fees, which is the APR lenders must disclose.
- Loan amount — the full principal borrowed.
- Nominal rate — the headline interest rate before fees.
- Fees & points — origination fees, discount points and other closing costs financed by the loan.
- APR — always equal to or higher than the nominal rate when fees exist.
Practical Example
A $100,000 loan at 6% for 30 years with $2,000 in fees:
- Monthly payment is about $600.
- Net cash received is $98,000.
- The APR rises to roughly 6.2% — the fees cost about 0.2 percentage points.
When comparing offers, compare APRs, not headline rates, because fees vary widely between lenders.
What Your Results Mean
- APR — the all-in annual cost of borrowing, including fees.
- Spread — how much the fees add to the rate; larger loans dilute the same fee.
- Total interest — interest paid over the full term at the nominal rate.
Frequently Asked Questions
What is the difference between APR and the interest rate?
The interest rate covers only the cost of the principal. APR includes the interest rate plus fees and points, so it shows the true annual cost of the loan.
Why is the APR higher than my rate?
Because fees reduce the cash you actually receive while your payments stay the same. You pay interest on the full principal but only get the net amount, which raises the effective rate.
Does a bigger loan lower the APR?
For the same fee amount, yes. Fees are spread over a larger principal, so the percentage impact is smaller. That is why points hurt small loans more.
Is the lowest APR always the best loan?
Not always. Compare total cost, term length and whether you plan to keep the loan long enough for the fees to pay off. A low APR with a long term can still cost more in total.
Does the APR include closing costs like title and appraisal?
Under US rules, the APR includes most finance charges but not every third-party closing cost. This calculator uses the fees you enter, so add any financed costs you want reflected.