U.S. loan cost · Regulation Z
APR calculator with fees.
Enter the note rate and the fees, tick which ones are finance charges, and see the APR, amount financed, finance charge and total of payments.
Loan and fees
Estimated APR
How the APR is calculated
The APR is the periodic rate at which the present value of all scheduled payments equals the amount financed, multiplied by the number of periods in a year. That is the actuarial method in 12 CFR 1026.22 and its Appendix J. The amount financed is the loan amount less any prepaid finance charge (12 CFR 1026.18(b)). The finance charge is total of payments minus amount financed, and the total of payments is the level payment times the number of payments. The payment itself is set by the note rate on the full loan amount.
Worked example
A $400,000, 30-year loan at 6.75% has a $2,594.39 monthly payment. With a $4,000 origination fee and $1,200 processing fee counted as finance charges, the amount financed is $394,800, the total of payments is $933,981.26, the finance charge is $539,181.26 and the APR is 6.878%.
Which fees count
A fee is in the APR only if it is a finance charge under 12 CFR 1026.4. Appraisal, investigation and credit-report fees are finance charges in general (1026.4(b)(4)), but on a loan secured by real property, bona fide and reasonable title, document-preparation, notary, credit-report and pre-closing appraisal fees are excluded (1026.4(c)(7)), as are application fees charged to all applicants (1026.4(c)(1)). The tabs only change the starting values and ticks; the engine is the same for all three.
Accuracy: a disclosed APR is treated as accurate within 1/8 of a percentage point, or 1/4 of a point for irregular transactions (1026.22(a)(2)-(3)). Rules as read on the Cornell LII pages on September 30, 2026; this tool is an estimate, not a legal determination.
FAQ
What is the difference between APR and interest rate?
The interest rate sets your payment. The APR also counts prepaid finance charges, so it is higher than the rate whenever such fees exist. See the CFPB explanation.
Why can my lender's APR differ?
Lenders include mortgage insurance and other items, use actual payment dates and treat some fees differently. Variable-rate and interest-only loans are not modelled here.
Does the APR tell me which loan is cheaper?
Only roughly. It assumes you keep the loan to the end of the term. If you will sell or refinance sooner, compare with the points break-even calculator.
Planning estimate, not financial or legal advice. Runs entirely in your browser; nothing is sent anywhere.