APR Calculator | |

* The Extra Cost () is the lump sum of all extra costs involved in the loan, which include points, application fee, closing cost, processing fee, title fee, and so on. In short, it's the money you borrowed that you never saw.E |
This calculator first calculates the monthly payment using +C and the original interest rate E = r/1200:
The RAPR ( = a/1200) is then calculated iteratively by solving the following equation using the Newton-Raphson method:
A |

APR Explained | ||||||||

Annual Percentage Rate (APR) is the equivalent interest rate considering all the added costs to a given loan. Naturally, it is a function of the loan amount, the interest rate, the total added cost, and the terms. The APR would equal the interest rate if there is no additional costs to a given loan. Here is an example:
To find the monthly payment for this loan, we can use the
Loan Calculator Scenario #1 with
Now, since you are only borrowing $200,000 but paying $1,443.39/month for 30 years,
we can back-calculate the equivalent interest rate (
Annual Percentage Rate = 7.75%.
The APR Calculator on this page will perform these two calculations in one pass. | ||||||||