Interest Rate / APR Percentage Calculator

Use this calculator to find the true cost of your loan. The APR (Annual Percentage Rate) includes interest and any additional loan-related fees, giving you a more accurate picture than the nominal interest rate alone.

Interest Rate vs APR Explained

Interest Rate is the base cost of borrowing. APR includes interest plus any fees and gives you the total cost of the loan over a year.

Feature	Interest Rate	APR
Definition	Annual interest on principal only	Total yearly cost (interest + fees)
Includes Fees?	No	Yes
Usefulness	Basic comparison	Better for full-cost comparison
Where Found	Ads, rate sheets	Loan disclosures

Real-Life Examples

Example 1: Personal Loan

	Loan A	Loan B
Amount	$10,000	$10,000
Interest Rate	6.0%	5.2%
Term	36 months	36 months
Fees	$0	$500
APR	~6.0%	~6.9%

Loan A ends up being cheaper despite a higher interest rate, because Loan B has a $500 fee included in the balance.

Example 2: Mortgage

	Option 1	Option 2
Amount	$250,000	$250,000
Interest Rate	5.25%	5.10%
Term	30 years	30 years
Closing Costs	$6,000	$12,000
APR	~5.35%	~5.70%

Option 1 has a higher interest rate but much lower fees, resulting in a better APR and long-term savings.

When Should You Use This Calculator?

• To compare **car loans**, dealer vs. bank
• To shop for **mortgages** across lenders
• To evaluate **personal loan** offers
• To assess **student loans** or **credit lines**

Tips

• Always compare **APR**, not just the interest rate
• Check if fees are added to the loan or paid upfront
• Use the calculator before signing any loan documents