Free APR calculator and APR estimator for fixed-rate loans: enter your interest rate, loan amount, term, and upfront fees to see an estimated APR when fees reduce cash received at closing. Example (this model): $320,000 at 6.5% for 30 years with $6,500 fees deducted from proceeds → estimated actuarial APR about 6.70%; monthly payment about $2,023 on full principal.
Uses your stated note rate (compounded monthly), loan principal, term, and upfront fees that reduce net cash received at closing while payments still amortize the full principal. Solves the monthly rate so the present value of payments equals net proceeds, then shows actuarial APR ≈ 12 × monthly IRR. Ignores PMI, escrow, odd days, prepaid per-diem interest, and Reg Z fee rules—not your Loan Estimate APR. The loan fee annualizer describes fee-only annualization without modeling a separate note rate.
Related calculators: Loan calculator · Mortgage calculator · Simple interest calculator · Compound interest · APY calculator · Implied loan rate (payment solver)
APR here reflects loan cash flows: payments versus net funding, expressed as an annualized rate from the solved monthly IRR.
APY describes how an earning balance grows when interest compounds within the year (for example savings). The APY calculator converts nominal rate and compounding frequency into APY.
Let M be the monthly payment amortizing principal P at the stated note rate, and N = P − fees net proceeds. The tool finds monthly IRR r such that
N = Σk=1n M ⁄ (1 + r)k
then reports actuarial APR ≈ 12 × r and an effective annual rate for comparison.
Monthly payment M = standard amortization on principal P at monthly rate i = (note% ÷ 100 ÷ 12) for n months. Net proceeds N = P − fees. The tool finds monthly IRR r such that present value of n payments of M at rate r equals N, then reports actuarial APR ≈ 12 × r (and an effective annual rate for comparison).
APR vs APY: APR here reflects loan cash-flow timing for borrowing. APY describes compounded growth on savings; the APY calculator page documents that conversion.
Not a Reg Z / Loan Estimate substitute: ignores PMI, escrow, odd-day interest, APR tolerance rules, prepaid finance charges definitions, variable rates, and lender-specific cash-flow timing.
This APR estimate calculator applies the formulas described on this page to the values you enter. Outputs are not financial, tax, legal, or medical advice.
Last reviewed: 2026-04-17
It estimates the annual percentage rate on a loan from your note interest rate plus upfront fees—here using fixed payments on full principal while net proceeds equal principal minus fees. It is a planning estimate, not your lender's Truth in Lending disclosure.
The note rate drives your scheduled payment on the loan amount. When fees reduce what you actually receive at closing, the effective borrowing cost (estimated APR) is typically higher than the note rate. This tool solves for that with the fee model described on the page.
No. Official disclosures follow Truth in Lending / Regulation Z rules, fee inclusion lists, rounding, and timing details this tool does not model. This page applies the actuarial-style formulation described here to your inputs only.
It assumes upfront fees reduce the net cash you receive at closing to (loan principal − fees), while the monthly payment is computed as if the full principal is amortizing at the stated note rate. Other fee treatments (for example fees folded into principal) can change APR and are not implemented here.
The page finds the monthly interest rate that makes the present value of your fixed monthly payments equal that net cash amount, then multiplies by 12 for a quoted annual figure. It also shows an effective annual rate for comparison. Your lender may quote APR differently.