Use this tool to estimate the yearly cost of credit when upfront fees are in play. Supply the amount, the rate, the term and the fees, and it returns the nominal APR and the effective APR.
By the Personalloaner Editorial Team · Last updated 2026-09-16
How we get paid: if you apply through the link above, a lending partner may send us a referral fee. It never changes the rate you are offered or what we publish. We are not a lender and we do not process applications. The lowest rates are only available to the most qualified applicants. Full disclosure.
Enter your numbers and press Calculate. Nothing you type leaves your browser.
How we get paid: if you apply through the link above, a lending partner may send us a referral fee. It never changes the rate you are offered or what we publish. We are not a lender and we do not process applications. The lowest rates are only available to the most qualified applicants. Full disclosure.
How this calculator works
The APR folds upfront fees into the yearly cost of credit. That figure normally exceeds the advertised note rate, because fees cut the cash you actually get while the payments do not change.
The tool solves for the monthly periodic rate i in this equation:
P - F = M * (1 - (1 + i)^-n) / i
P = loan amount
F = upfront fees
M = monthly payment at the note rate
n = number of monthly payments
It reports two figures: the nominal APR = i * 12 * 100, and the effective APR = ((1 + i)^12 - 1) * 100. With no fees, each equals the note rate.
Fees vary with the lender and the product, so use the fees on your own offer.
Common questions
How does the APR differ from the interest rate?
The interest rate prices the principal alone. The APR adds upfront fees on top, so it captures the full yearly cost of the credit.
Which figures does the tool return?
The first is the nominal APR — the monthly periodic rate times 12. The second is the effective APR, which compounds the monthly rate over a full year. Both come from the equation above.
Why does the APR exceed my rate?
Fees reduce the net money you receive while the payments are unchanged. For the cash you actually got, the yearly cost has to be higher to break even.
Which fees belong in the box?
Enter upfront fees paid at closing, an origination fee for example. Skip late fees and optional add-ons, since those depend on your behaviour.
