APR Calculator (Estimate)

APR (Annual Percentage Rate) is a broader measure of borrowing cost than the nominal interest rate. It includes the interest rate plus certain fees and costs spread over the term of the loan. This calculator helps you estimate APR so you can compare loan offers on a more consistent basis.

The nominal rate tells you the base interest on the principal. APR tells you the effective annual cost after accounting for fees. Two loans with the same interest rate can have different APRs if one has higher upfront fees. Comparing APR helps you identify the true cost of borrowing.

This calculator provides an estimate based on simple assumptions: it spreads fees across the term and uses the fixed-rate payment formula. Real APR calculations can differ by product type, compounding conventions, and regulatory methodology. Still, an estimate can be useful for quick comparisons and decision-making.

Use this tool if you are comparing loans with different fee structures, or if you want to understand how fees change the effective cost of borrowing. The result is not a formal APR disclosure, but a practical approximation for planning.