Bankrate Calculator

Bankrate Calculator

Calculate the effective APR and total cost of a loan including fees.

Loan Amount

Please enter a valid loan amount.

Annual Interest Rate (%)

Please enter a valid interest rate.

Loan Term (years)

Please enter a valid loan term.

Fees ($)

Please enter valid fees.

Compounding Frequency

Results

Effective APR: %

Total Cost (including fees): $

Total Interest Paid: $

How it's calculated:

The effective APR is computed by finding the interest rate that equates the net loan amount (principal minus fees) to the present value of all payments, using the specified compounding frequency. The formula used is: Net Loan = (Payment / (r/n)) * (1 - (1 + r/n)^(-n*t)), where r is the APR, n is compounding periods per year, t is term in years. Payment is derived from the original loan amount and APR. The APR is solved iteratively.