APR Calculator
Find the true cost of any loan by calculating the Annual Percentage Rate (APR) including origination fees and closing costs.
True APR
6.5%
Equals nominal rate (no fees)
Monthly payment
$391.32
60 mo at 6.5%
Total interest
$3,479
Over 60 months
Total fees
$0
Origination + other upfront fees
Total cost of loan
$23,479
Payments + all fees
Show the math
Your monthly payment is calculated on the full loan amount at the nominal rate — regardless of fees.
M = $20,000 × [(0.005416666666666667).toFixed(6) × (1 + 0.005417)60] / [(1 + 0.005417)60 − 1] = $391.32
The APR is the monthly discount rate r that makes the present value of all future payments equal to the amount you actually receive (loan amount minus upfront fees), annualized.
$20,000 − $0 = Σ $391.32 / (1 + r)t, t = 1…60
Solving for r (via bisection) gives a monthly rate of 0.542%, so APR = 0.542% × 12 = 6.5%. The 0% spread above your 6.5% nominal rate is entirely due to your $0 in upfront fees.