APR Calculator
See the real annual cost of a loan once fees and points are baked in — the APR lenders must disclose, and the number you should actually compare.
That 6.7% rate isn't the real cost: with $6,000 in fees it's a 6.898% APR — 0.20 points higher.
6.898%
true APR on a $300,000 loan at 6.7% with $6,000 fees (Q2 2026)
+0.20 pts
how much the fees raise your rate above the 6.7% note rate (Q2 2026)
$402,899
total cost over 30 years — interest plus upfront fees (Q2 2026)
Why APR beats the headline rate
Fees and points are part of the cost — APR is the only number that includes them.
The rate isn't the whole story
A headline rate ignores what you pay just to get the loan. Fold in $6,000 of fees and that 6.7% note rate becomes a 6.898% APR — the number that reflects what borrowing really costs.
You repay more than you receive
Borrow $300,000 with $6,000 in fees and only $294,000 actually reaches you — but your payments are based on the full $300,000. That gap is exactly what APR captures.
Compare apples to apples
Two loans, two rate quotes, different fees — APR is the single number that makes them comparable. It's why lenders are legally required to disclose it alongside the rate.
How the APR Calculator Works
Formula
Monthly payment = amortize(loan, note rate, term)
Net received = loan − fees
APR = the rate that amortizes the NET received to that
same monthly payment (solved by bisection), × 12.Enter the loan amount
The full principal you're borrowing.
Enter the note rate
Defaults to the live 30-yr mortgage rate (Q2 2026).
Enter the term
How many years the loan runs.
Add upfront fees
Origination, points, and closing costs.
See the true APR
Plus the premium over the note rate and total cost.
APR exists to answer one question: what does this loan really cost per year, fees and all? The monthly payment is set by the note rate on the full loan, but because fees come out of the proceeds, you receive less than you borrow. In the example, $300,000 at 6.7% with $6,000 of fees nets you $294,000 yet repays on the full $300,000 — an effective 6.898% APR (Q2 2026).
The practical takeaway: compare loans by APR, not the advertised rate. A 'no fee' loan at a slightly higher rate can be cheaper than a low-rate loan loaded with points — especially on shorter terms, where fees are spread over fewer payments. Confirm the precise figure on each lender's Loan Estimate, which is governed by federal disclosure rules.
Frequently Asked Questions
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