APR Calculator — True Annual Percentage Rate (vs. Interest Rate)
Calculate the true APR of any loan by factoring in origination fees, closing costs, and other upfront charges. Free, instant, and accurate.
APR Calculator
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Nominal Interest Rate (as quoted)
6.500%
APR is Higher Than Rate By
▼ 0.195 percentage points
Monthly Payment
$1,264.14
Net Cash Received (After Fees)
▼ $196,000.00
Total Interest Paid
$255,088.98
Total Cost of Loan (Interest + Fees)
$459,088.98
Total Upfront Fees
$4,000.00
Scenario Comparison
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Nominal Rate vs. True APR
Nominal Rate
6.500%
As quoted by lender
True APR
6.695%
Includes fee impact
Cost Waterfall
| Loan Amount | $200,000.00 |
| − Upfront Fees | −$4,000.00 |
| = Net Cash Received | $196,000.00 |
| Monthly Payment × 360 months | $455,088.98 |
| + Upfront Fees | +$4,000.00 |
| = Total True Cost | $459,088.98 |
Cost Composition: Interest vs. Fees
Break-Even on Fees (Educational Estimate)
At a rate roughly 0.50% higher but with no fees, you would pay approximately $83.33/month more in interest. Your upfront fees of $4,000.00 would pay for themselves in approximately 48 months. If you plan to keep this loan longer than that, the lower rate with fees is advantageous.
Key Insight
Your lender is quoting 6.500% but your actual borrowing cost is 6.695% APR — a difference of 0.195 percentage points. Over the life of the loan, you will pay $459,088.98 in total (interest + fees).
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