True Cost of Borrowing
APR Calculator
Calculate the Annual Percentage Rate (APR) of your loan including all fees. Compare the true cost of different loan offers.
Loan Details
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APR Analysis
True cost of your loan
Annual Percentage Rate (APR)
8.79%
+1.29% above stated rate
Monthly Payment
$500.95
Total Fees
$750.00
Amount Received$24,250.00
Total Interest$5,056.92
Total Cost of Loan$5,806.92
Understanding APR vs Interest Rate
Interest Rate
The interest rate is the cost of borrowing the principal loan amount. It does not include:
- Origination fees
- Closing costs
- Discount points
- Other lender fees
APR (Annual Percentage Rate)
APR represents the true annual cost of borrowing, including:
- Interest rate
- Origination fees
- Closing costs
- Other required fees
Why APR Matters
When comparing loan offers, the APR gives you a more accurate picture of the total cost. A loan with a lower interest rate but higher fees might actually cost more than a loan with a higher interest rate and lower fees. Always compare APRs to find the best deal.