Basic APR Calculator


Monthly Payment:

Total Interest Paid:


Annual percentage rate (APR) is the cost of borrowing money over a period of time, expressed as a percentage. It includes the interest rate plus any additional fees or charges associated with the loan.


The following formula is used to calculate APR:

APR = (Interest + Fees) / Principal * (1 / Time) * 100


  • APR is the annual percentage rate
  • Interest is the total interest paid on the loan
  • Fees are any additional fees or charges associated with the loan
  • Principal is the amount of money borrowed
  • Time is the length of the loan in years


There are a number of benefits to using a basic APR calculator:

  • Helps you compare loans: An APR calculator can help you compare loans from different lenders. This can help you find the best loan for your needs and budget.
  • Helps you understand the true cost of a loan: An APR calculator can help you understand the true cost of a loan, including the interest rate and any additional fees or charges. This can help you make an informed decision about whether or not to take out a loan.
  • Helps you save money: An APR calculator can help you save money by helping you find the loan with the lowest APR.

Interesting facts

  • APR is required to be disclosed by lenders on all consumer loans.
  • APR is calculated using a standardized formula, so it is easy to compare APRs from different lenders.
  • APR can vary depending on a number of factors, such as the type of loan, the borrower’s credit score, and the amount of money being borrowed.

Scholarly references

  • The Truth in Lending Act: A Comprehensive Guide to Consumer Credit Laws by Michael B. Lacroix and Joseph G. Winer (2016)
  • Consumer Finance: An Introduction by Philip L. Swan and James G. Ang (2018)
  • Personal Finance: The Complete Guide by William G. Nickels, Susan J. Nickels, Bruce R. Miller, and Stephen J. Arnold (2020)


The following table shows some examples of APR calculations:

Loan typePrincipalInterestFeesTime (years)APR
Personal loan$10,000$1,000$200512.4%
Auto loan$20,000$2,000$300310.3%


Basic APR calculators can be used by anyone who is considering taking out a loan. This includes students, borrowers, and small businesses.


Basic APR calculators are a valuable tool that can help you compare loans, understand the true cost of a loan, and save money. If you are considering taking out a loan, be sure to use a basic APR calculator to help you make an informed decision.

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