Free calculator · instant results · no signup required
APR Calculator
The interest rate is what the lender advertises. APR is what you actually pay. Enter your loan details and fees to see the true Annual Percentage Rate and compare offers accurately.
Educational calculators — always consult a licensed professional before making financial decisions.
The principal you're borrowing (not including fees).
The nominal rate on your loan offer — not the APR.
Most common. Fees amortized over longest period; APR only slightly above note rate.
Lender fee from Section A of your Loan Estimate. Enter 0 if none.
Each point = 1% of the loan. Enter 0 if no points.
Broker fees, upfront MIP/VA funding fee, prepaid interest. Enter 0 if none.
True APR
6.80%
Quoted rate: 6.75% · Fees add 0.05%
Healthy fee spread
A 0.05% spread between rate and APR is normal. Fees are reasonable relative to your loan size.
APR vs Rate
For educational purposes only. These results are estimates. Always verify with your lender for accurate rates, fees, and payment figures.
Your Saved Scenarios
No saved scenarios yet
What you'll need
- ·Loan amount (principal)
- ·Quoted interest rate
- ·Loan term
- ·Origination / underwriting fee
- ·Discount points (if any)
- ·Other prepaid finance charges (broker fees, upfront MIP)
What you'll get
- ✓True APR — Rate including all fees
- ✓Fee impact — How much fees add to your rate
- ✓Total borrowing cost — Interest + fees over the loan
- ✓Spread analysis — Healthy vs high fee signal
How it works
Enter loan details
Provide the loan amount, interest rate, loan term, and closing costs.
Add lender fees
Include origination fees, discount points, mortgage insurance, and broker fees.
Get your true APR
See the annual percentage rate that includes all financing costs for comparison.
APR vs Interest Rate: $300,000 Loan
| Scenario | Interest Rate | Closing Costs | APR |
|---|---|---|---|
| No-fee loan | 7.00% | $0 | 7.00% |
| 1 point discount | 6.50% | $3,000 | 6.73% |
| 2 points + fees | 6.00% | $9,000 | 6.39% |
| High-fee lender | 6.75% | $8,000 | 7.14% |
Lower APR = better deal overall. Compare APR, not just the interest rate.
State guides
How this varies by state
Property taxes, insurance costs, first-time buyer programs, and closing costs differ significantly across states. See local data for your state.
California
Texas
Florida
New York
Illinois
Pennsylvania
Ohio
Georgia
North Carolina
Michigan
New Jersey
Virginia
Washington
Arizona
Colorado
Tennessee
About this calculator
Why is the APR always higher than the interest rate?+
APR includes fees that the interest rate doesn't — origination fees, discount points, mortgage broker fees, upfront mortgage insurance, and prepaid interest charges. APR spreads these upfront costs across the entire loan term. For example, $5,000 in fees on a $320K, 30-year loan adds about 0.15% to APR. Rate equals APR only if there are zero prepaid finance charges, which is extremely rare.
How do I compare two loan offers using APR?+
Lower APR equals lower total cost over the full loan term. However, APR assumes you keep the loan for 30 years. If you sell or refi in 7 years, a higher-rate, lower-fee loan may actually be cheaper. Always compare both APR and total closing costs, and factor in how long you'll actually keep the loan.
What fees are NOT included in APR?+
APR excludes title insurance, appraisal fees, home inspection, survey costs, attorney fees, recording fees, prepaid property taxes and insurance, and HOA transfer fees. It includes origination fees, discount points, mortgage broker fees, upfront mortgage insurance (FHA MIP, VA funding fee), and prepaid interest. Two loans with the same APR can have different total closing costs.
What is a typical spread between rate and APR?+
A healthy APR spread is 0.1–0.3% above the interest rate. Over 0.5% signals high fees — investigate what's included. For example, 6.75% rate with 7.05% APR is normal. 6.75% rate with 7.50% APR means you're paying a lot in fees. The bigger the fee, the bigger the spread.
Want to try different numbers?
Back to the calculator ↑APR Calculator is built and maintained by the RealCostIQ editorial team. Cost ranges and rates are checked against published industry data and contractor quotes, and revised when the underlying figures move. Read our data methodology or more about who builds this. Every calculation runs in your browser — no account, and none of your inputs are stored.
Cost ranges and rates here are checked against contractor quotes and published industry data. If a number still looks off, email Support@RealCostIQ.com and we'll review and fix it.