See how a fee turns a rate into an APR
Enter a loan with a fee and watch the interest rate become an APR, so you can see what the fee really adds to the cost of borrowing.
How this explainer works
Enter a loan amount, interest rate, term and a fee, and it shows how that fee turns the interest rate into an APR. The APR is the yearly cost of the loan including most required fees, so a loan with a fee always has an APR higher than its rate.
What the number means
We solve for the yearly rate at which your scheduled payments are worth exactly the money you received after the fee. That’s the same idea lenders use, so our estimate is usually close to a lender’s figure — but a lender’s Truth in Lending disclosure is the official number and may include charges we can’t see.
Why it matters
Two offers can share an interest rate and cost very different amounts once fees are in. Comparing by APR — for the same amount and term — keeps a big fee from hiding behind a low rate.
What it can’t tell you
- Your actual APR, which only a lender can state in its disclosure.
- The effect of charges we don’t model, such as certain insurance or ancillary products.
- Whether an offer is good overall — APR is one input; the total cost and the terms matter too.