APR Calculator
Calculate estimated APR, monthly payment, total interest, and total borrowing cost from loan terms and fees.
Loan details
This calculator auto-updates when values change.
This calculator is for general information only and is not financial advice. APR rules can vary by lender and product.
Results
Results update automatically.
Estimated APR
7.27%
Cost breakdown
About This APR Calculator
This APR calculator estimates the annual percentage rate of a loan after including upfront fees.
Enter the loan amount, nominal interest rate, loan term, and upfront fees. The calculator estimates monthly payment, total payments, total interest, and APR.
APR is useful because it gives a broader view of borrowing cost than the headline interest rate alone.
APR Example
If a loan has a 7% interest rate but also charges a GBP 500 arrangement fee, the APR can be higher than 7% because the fee increases the real cost of borrowing.
This is why two loans with the same interest rate may not cost the same overall. Fees, term length, and repayment structure all affect the true borrowing cost.
Why APR Matters
APR gives a broader comparison than the headline interest rate. It is especially useful when comparing loans that include arrangement fees, broker fees, or upfront charges.
APR still has limits. Early repayment charges, optional insurance, late fees, variable-rate changes, and product-specific rules may not be fully captured by a simple estimate.
How to Compare Loans Using APR
Compare APR alongside monthly payment, total repayment, fees, flexibility, and the term. The lowest APR is helpful, but the loan still needs to fit your monthly budget.
When borrowing for a short period, upfront fees can have a large effect. Test the numbers before assuming a lower rate is automatically cheaper.
How to Use This Calculator
- 1
Enter the loan amount
Add the amount borrowed before fees.
- 2
Enter rate and term
Add the nominal interest rate and loan length in years.
- 3
Add upfront fees
Include arrangement fees or other upfront borrowing costs.
- 4
Review estimated APR
Compare the estimated APR with the nominal interest rate and total borrowing cost.
Frequently Asked Questions
What is APR?v
APR stands for annual percentage rate. It estimates yearly borrowing cost including interest and certain fees.
Why is APR higher than the interest rate?v
APR can be higher because it includes fees and borrowing costs, not just interest.
Is this exact for every lender?v
No. Lenders may calculate APR according to specific legal rules and product terms.
Does this include early repayment charges?v
No. It only includes the upfront fees you enter.