Using the APR Calculator
Enter fees paid at origination in the fee field. Comparing this estimate with the stated interest rate shows why a low headline rate can still come with a higher financing cost.
Worked example
Use the example inputs below to reproduce this result. These are the form's starting values, not recommended targets. Changing your inputs updates your result above; this worked example stays fixed for comparison. Results are rounded for display.
Example inputs
- Amount borrowed
- 20000
- Annual interest rate (%)
- 6
- Term (months)
- 60
- Upfront fees
- 500
Example result
- Estimated nominal APR (%)
- 7.06
- Monthly payment
- 386.66
Method and assumptions
Finds the monthly rate equating net loan proceeds to payments, then multiplies by 12. Not a jurisdiction-specific legal APR disclosure.
Compare the whole borrowing commitment
When comparing loan scenarios, change one assumption at a time. First compare terms at the same rate and balance, then compare rates over the same term. This makes it easier to see why the monthly payment changes. Keep any upfront costs alongside the result so that a lower installment does not hide a more expensive agreement.
Common question
Why does the estimated APR rise when fees increase?
You receive less usable money while making the same scheduled loan payments. The rate that connects those net proceeds to the payments therefore rises.
Guide updated .