APR calculator
APR calculator: the true yearly rate with fees counted
Enter what a loan costs and how long it runs to see its annual percentage rate with every fee counted, and what it costs per $100 borrowed.
The loan
Everything you pay beyond the amount you get.
APR
391.1%
The cost as a yearly rate
Cost per $100
$15.00
$60.00 in all
| This loan | 391.1% |
|---|---|
| Credit union payday alternative loan, at most | 28% |
| Military Lending Act cap for service members | 36% |
At 36% or more, this costs more than the Military Lending Act allows for covered service members. Before you borrow, compare every option by cost.
An estimate by the Regulation Z method. The lender's disclosure shows the APR it calculated.
How this works
- Regulation Z describes the APR as a measure of the cost of credit, expressed as a yearly rate.
- Loan fees count as part of the finance charge under Regulation Z, so they count in the APR.
- For a loan repaid in one payment, the APR is the fees and interest divided by the amount you get, scaled from the loan's days to a 365-day year.
- For monthly payments, the APR is the yearly rate at which your payments equal the money you actually receive (the actuarial method in Regulation Z Appendix J).
- The result is shown next to 28%, the most a credit union payday alternative loan can charge, and 36%, the Military Lending Act cap for covered service members.
Sources
- Regulation Z §1026.22: annual percentage rate (CFPB)
- Regulation Z §1026.4: finance charge (CFPB)
- Regulation Z Appendix J: APR computations (Cornell LII)
- MyCreditUnion.gov: payday alternative loans
- 32 CFR §232.4: Military Lending Act rate limit (Cornell LII)
Awaiting expert reviewEstimates only; not financial, tax or legal advice.
Common questions
What is APR?
The annual percentage rate is a measure of the cost of credit, expressed as a yearly rate. It counts loan fees as well as interest, so two loans with the same interest rate can have different APRs.
Why is a short loan's APR so high when the fee is small?
Because the APR scales the cost to a full year. The CFPB says a two-week loan with a $15 per $100 fee comes to almost 400% APR.
How do I calculate the APR on a loan repaid in one payment?
Divide the fees and interest by the amount you get, divide that by the number of days in the loan, then multiply by 365.
Is APR the same as the interest rate?
No. The interest rate covers only interest. The APR also counts fees, like an origination fee, so it's usually higher.
Is the information I enter saved or sent anywhere?
No. What you type stays on this page. It isn't saved or sent anywhere, and it clears when you leave or reload the page.