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Annual Percentage Rate Loan Calculator

Oct 31, 2023

How to use Bankrate's APR loan calculator

Our calculator tool will help you to estimate your monthly payments on a personal loan, as well as the total interest accrual over the life of the loan. To calculate your loan cost, just enter the loan amount, interest rate, loan term and then click calculate. The calculator will then show you what you can expect your monthly payment to be, as well as what the loan will really cost you (principal plus interest).


Types of APRs


A fixed-rate loan has an interest rate that does not fluctuate with the prime interest rate. Be mindful that the interest rate may change based on other factors, like your credit score, so read the fine print before committing to a loan.


A variable interest rate moves up and down over time, based on an underlying index rate like the prime rate. As market conditions change, your monthly payment may move up or down, depending on what your interest rate is at the time.

How is APR calculated?

APR stands for Annual Percentage Rate and can help you to calculate the true cost of your loan. The principal amount borrowed is divided by the interest rate plus total fees; this figure is then divided by the total number of days in the loan term. The resulting number is multiplied by 365 (representing one year) and then multiplied again by 100 (to yield a percentage). 

APR = ((Interest + Fees / Loan amount) / Number of days in loan term)) x 365 x 100

What is the difference between APR and interest rate?

A loan’s APR tends to be higher than its interest rate, because the APR is calculated by factoring in any applicable fees (origination, application, payment processing, etc.) – plus the interest rate itself.