APR Calculator
APR including upfront fees.
Inputs
$
$
%
yrs
Result
APR6.65%
Monthly Payment$1,264.14
About the APR Calculator
The APR Calculator computes the true annual percentage rate of a loan by including up-front fees and points in the effective cost of borrowing, not just the nominal interest rate.
Calculation method
Adds fees to the initial cash outflow, then solves for the rate that equates that outflow with the future payment stream.
APR: rate that satisfies Loan − Fees = Σ Payment / (1 + r/12)^tHow to use this calculator
- Enter the loan amount and nominal interest rate.
- Enter the loan term.
- Enter total fees financed at closing.
Example
A $250,000 mortgage at 6.5% for 30 years with $3,000 in fees has an APR of about 6.61% — the fee raises the true cost slightly above the note rate.
Frequently asked questions
APR vs. interest rate — what's the difference?
Interest rate is the cost of the money. APR is the total annualized cost including fees, points, and mortgage insurance. APR is the fair comparison metric.
Why is APR higher than my rate?
Because APR spreads fees over the life of the loan. If you pay off early, your effective APR is even higher.
Does APR include closing costs?
It includes finance charges — origination, discount points, mortgage insurance. It does not include appraisal or third-party costs paid directly to non-lenders.
Student loans: what to know before you calculate
Student loans are amortizing installment loans — the same math as auto and personal loans — but the terms, rates, and repayment plans are unique. US federal loans have fixed rates set each July, standard 10-year terms, and income-driven options. Private loans price on credit and can be fixed or variable. Whichever type you have, the monthly payment depends on three inputs: balance, interest rate, and term.
Worked examples
- Undergraduate — $27,000 federal
$27,000 balance at 6.53% on the Standard 10-year plan = about $307/month, with roughly $9,850 total interest over the life of the loan.
- Graduate — $60,000 federal
$60,000 balance at 8.08% on a 10-year term = about $730/month, with roughly $27,600 total interest paid.
- Refinance — $45,000 private
Refinancing $45,000 from 7.5% to 5.75% over 10 years drops the payment from $534 to $493 and saves close to $5,000 in interest — if you don't need federal protections.
Student loan FAQs
How is a student loan monthly payment calculated?
Student loans use the standard amortizing-loan formula: M = P × r × (1 + r)^n / ((1 + r)^n − 1), where P is the balance, r is the monthly interest rate (APR ÷ 12), and n is the number of months. Federal loans typically use a 10-year (120-month) standard term.
What is a realistic interest rate for student loans?
US federal undergraduate Direct loans for 2024–25 are 6.53% fixed, graduate Direct loans 8.08%, and PLUS loans 9.08%. Private student loan rates typically range from 4% to 15% depending on credit and whether you choose fixed or variable.
Standard vs. income-driven repayment — which saves more?
The Standard 10-year plan has the highest monthly payment but the lowest total interest. Income-driven plans (SAVE, IBR, PAYE) lower payments based on income but extend the term to 20–25 years, so total interest paid is usually much higher unless forgiveness applies.
Should I refinance federal student loans?
Refinancing to a private lender can reduce your rate if you have strong credit and stable income, but it permanently forfeits federal benefits: income-driven plans, deferment, forbearance, and Public Service Loan Forgiveness (PSLF). Only refinance federal loans if you're certain you won't need those protections.
Do extra payments really shorten a student loan?
Yes. Every extra dollar goes to principal, which lowers the balance interest is charged on next month. Just $50 extra per month on a $30,000 loan at 6% over 10 years pays it off about 18 months early and saves roughly $1,600 in interest.
Ready to run the numbers?
Use the dedicated Student Loan Calculator to see your monthly payment and total interest.
Disclaimer: This calculator is for informational and educational purposes only and does not constitute financial, tax, or legal advice. Consult a qualified professional for decisions specific to your situation.