APR Calculator

▼ Modify the values and click the Calculate button to use

General APR Calculator

$
yrs
mo
%
$
$
REAL APR: 6.563%
Amount Financed$100,000.00
Upfront Out-of-Pocket Fees$2,500.00
Payment Every Month$1,110.21
Total of 120 Payments$133,224.60
Total Interest$33,224.60
All Payments and Fees$135,724.60
COST BREAKDOWN ANALYSIS
● Principal 74% ● Interest 24% ● Fees 2%

View Amortization Table

Use the calculator below for mortgage loans in the United States.

Mortgage APR Calculator

$
%
years
%
$
$/year
Real APR: 6.367%
Loan Amount$280,000.00
Down Payment$70,000.00
Monthly Pay$1,714.91
Total of 360 Payments$617,368.73
Total Interest$337,368.73
All Payments and Fees$620,868.73
● Principal 45% ● Interest 54% ● Fees 1%

View Amortization Table

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Mortgage APR Intelligence FAQ

Why should you use an APR calculator instead of a standard mortgage calculator?

While a standard mortgage calculator focuses on your monthly principal and interest, an APR calculator factors in lender fees, private mortgage insurance (PMI), and points. This provides the most accurate “real” cost of borrowing for home buyers in the United States.

How does PMI affect your mortgage APR?

Private Mortgage Insurance (PMI) is an annual cost required if your down payment is less than 20%. Our calculator includes this yearly expense in the total cost breakdown, which increases your Real APR and your true monthly obligation.

Understanding Annual Percentage Rate (APR)

The APR is an all-inclusive, annualized cost indicator of a loan. It includes interest as well as fees and other charges that borrowers will have to pay. Borrowers often confuse APR with the interest rate, but there is a critical distinction: the interest rate represents the cost of principal only, while APR factors in the total cost of borrowing.

What’s Included in APR?

  • Administration & Application fees
  • Mortgage insurance & Broker fees
  • Origination & Discount points
  • Processing & Underwriting fees

Common Exemptions

  • Appraisal & Survey fees
  • Title insurance
  • Builder Warranties
  • Pre-paid taxes/insurance

Limitations of the APR

While APR is excellent for comparisons, it presumes the loan will run its full course. If you plan to pay off a loan early, the APR may underestimate the impact of upfront costs. For example, upfront fees appear cheaper spread over 30 years than over an accelerated 10-year plan.

Types of APRs

Fixed APR: Steady rates for the duration of the loan. Ideal for locking in rates when market interest is low.
Variable APR: Rates change over time based on an index (like the Federal Funds Rate) and your credit-based margin.

APR vs. APY

APY (Annual Percentage Yield) considers yearly compounded interest, whereas APR typically reflects monthly periods. Banks often advertise APR for loans (because the numbers look smaller) and APY for savings accounts (because the numbers look larger).

Example Calculation

If a $100 loan has an APR of 10% compounded monthly, the interest paid at year-end is:

$$Principal \times ((1 + \frac{r}{n})^n – 1)$$ $100 \times ((1 + \frac{10\%}{12})^{12} – 1) = \$10.47$

Despite appearances, a 10% APR is equivalent to a 10.47% APY.

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