Loan APR calculator with fees
Fees paid upfront raise the real cost of a loan. This puts those fees into a yearly rate, so you can compare offers.
Result
6.05%Yearly rate with fees (APR)
- Effective yearly rate (close to an EU APRC, but not the same)
- 6.22%
- Monthly payment
- 377.42
- Finance charge (interest + fees)
- 3,145.48
- Amount really received
- 19,500.00
- Total of payments
- 22,645.48
Inputs
- Amount borrowed
- 20000
- Nominal rate per year
- 5
- Term
- 60
- Upfront fees (optional)
- 500
- Monthly payment (optional)
- 0
How it is calculated
We look for the monthly rate i such that amount − fees = payment × (1 − (1 + i)^−n) ÷ i.
Result
Yearly rate with fees (APR)
- Effective yearly rate (close to an EU APRC, but not the same)
- 6.22%
- Monthly payment
- 377.42
- Finance charge (interest + fees)
- 3,145.48
How it is calculated
- We look for the monthly rate i such that amount − fees = payment × (1 − (1 + i)^−n) ÷ i.
- APR = i × 12 (US method); effective rate = (1 + i)^12 − 1.
- Finance charge = total of payments − amount + fees.
Example
20,000 at 5% over 60 months with 500 of fees: payment 377.42, APR 6.05%, effective rate 6.22%, finance charge 3,145.48.
Good to know
- The US APR and the regulated EU APRC (TAEG) are not the same: the regulated rate includes specific costs (required insurance, guarantees…) set by law.
- Equal payments; fees paid upfront only.
Frequently asked questions
What is this tool used for?
Fees paid upfront raise the real cost of a loan. This puts those fees into a yearly rate, so you can compare offers.
How is the result calculated?
We look for the monthly rate i such that amount − fees = payment × (1 − (1 + i)^−n) ÷ i.
What should I check before using the result?
The US APR and the regulated EU APRC (TAEG) are not the same: the regulated rate includes specific costs (required insurance, guarantees…) set by law.