APR Calculator

APR Calculator

Estimate annual percentage rate from monthly loan cash flows and upfront or financed fees.

UNDERSTAND THE ANSWER

How is this calculated?

Assumes equal monthly payments starting one month after funding, a fixed rate and no balloon payment. Fees are paid at funding or added to the loan balance. This planning estimate is not a jurisdiction-specific regulatory APR disclosure.

Monthly discounted cash flowsNet proceeds = Σ payment / (1 + monthly rate)^k; annual rate = monthly rate × 12

A practical example

A 25,000 loan at 7.5% for 60 months has an APR above 7.5% when 500 in upfront fees are included.

Calculated result

Loan proceeds before feesScenarioCalculated answer
20,00018.573%
25,00028.3554%
30,00038.2111%

Assumptions, interpretation and common mistakes

Calculation assumptions

  • Payments occur monthly at the end of each period with a fixed payment amount.
  • APR is the monthly cash-flow discount rate multiplied by 12; jurisdiction-specific disclosure rules may differ.
  • Upfront fees reduce net proceeds; financed fees increase the repayment balance.

How to interpret the result

  • Interest rate excludes fees; APR includes the entered loan fees.
  • A payment below principal divided by term would require a negative rate and is not supported.
  • Rounded monthly payments can produce a slightly different implied rate.

Common mistakes to avoid

  • Entering an annual payment as a monthly payment.
  • Counting the same fee as both upfront and financed.
  • Treating this planning estimate as a legally compliant lender disclosure.