Annual Percentage Rate (APR) Calculator is a free online finance calculator that could calculate your real APR quickly and accurately and help you to find out the real APR of your loan, considering all the fees and extra charges.

Simply input your loan amount (principal), interest rate, loan term, compounding frequency, payment frequency, financed fees and extra charges to determine the real APR and the true cost of borrowing. Help you to understand the real APR and the total finance charges and make informed financial decisions.

What Is Annual Percentage Rate (APR)?

Annual percentage rate (APR) refers to the yearly interest generated by a sum that's charged to borrowers or paid to investors. APR is expressed as a percentage that represents the actual yearly cost of funds over the term of a loan or income earned on an investment.

The APR is an all-inclusive, annualized cost indicator of a loan. It includes interest as well as fees and other charges that borrowers will have to pay. The APR provides consumers with a bottom-line number they can compare among lenders, credit cards, or investment products.

An annual percentage rate (APR) is the yearly rate charged for a loan or earned by an investment and includes interest and fees.

Financial institutions must disclose a financial instrument’s APR before any agreement is signed. The APR provides a consistent basis for presenting annual interest rate information in order to protect consumers from misleading advertising.

Borrowers often confuse APR with the interest rate. The interest rate is the amount of compensation per period for borrowing money and includes the cost of principal only.

While valid, interest rates do not offer the accuracy needed to determine which rate from which lender amounts to the best deal. Since the APR includes both interest and fees, it addresses this challenge by factoring into the interest rate and other additional costs associated with the loan.