Bankrate Calculator
Calculate the effective annual percentage rate (APR) and total cost of a loan including fees and compounding interest.
Published by:
isCalculator Editorial Team
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How to use this tool?
How to Use the Bankrate Calculator
This calculator computes the Effective APR and total loan cost, including fees, using iterative solving.
- Enter Loan Amount – The principal you borrow (e.g., $10,000).
- Enter Annual Interest Rate – The nominal rate (e.g., 5 for 5%).
- Enter Loan Term – In whole years (e.g., 5).
- Enter Fees – Any upfront costs in dollars (e.g., $500).
- Select Compounding Frequency – Monthly (default), Quarterly, Semi-Annually, or Annually.
- Click "Calculate APR" – Results appear below.
Results:
- Effective APR – The true annual rate accounting for fees and compounding.
- Total Cost – Sum of all payments plus fees.
- Total Interest – Interest paid over the loan term (excluding fees).
Note: All monetary values are in dollars. Ensure inputs are non-negative and the term is at least 1 year.
Previous Results
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Frequently Asked Questions
APR stands for Annual Percentage Rate. It represents the yearly cost of borrowing money, including interest and fees, expressed as a percentage.
More frequent compounding increases the effective APR because interest is charged on interest more often. Our calculator allows you to choose monthly, quarterly, semi-annual, or annual compounding.
You can input any upfront fees such as origination fees, processing fees, or closing costs. These are subtracted from the loan amount to determine the net amount you receive.
