Personal Loan APR Calculator
Advertised interest rate plus an origination fee is not your real cost. This calculator converts rate + fees into the true APR — the number that lets you compare two offers fairly.
Offer details
Personal loan fees typically range 0–8%
True cost
Why APR is the only number that compares offers
Two lenders can quote the same 12.9% and cost very different amounts. One charges no fee; the other deducts 5% up front. You repay interest on the full amount either way, but you only receive 95% of it — so the effective annual cost is higher than the sticker rate. Under the federal Truth in Lending Act, lenders must disclose APR precisely so borrowers can make that comparison; the Consumer Financial Protection Bureau publishes guidance on reading those disclosures.
Rules of thumb: on a 48-month loan, every 1% of origination fee adds roughly 0.5% to your APR. Shorter terms amplify the effect — the same fee spread over 24 months hurts about twice as much as over 48. So if you plan to pay early, a fee-heavy loan is a worse deal than the rate suggests. Model that with the early payoff calculator.
Once you know the APR, size the payment with the personal loan calculator, or check whether refinancing card debt makes sense using the debt consolidation calculator. If your quotes are coming back above 30%, improving your credit first is usually worth the wait.
Frequently asked questions
What is the difference between interest rate and APR?
The interest rate is the cost of borrowing alone. APR also includes fees such as origination fees, so it is the better number for comparing offers.
Why is my APR higher than the quoted rate?
Fees taken out of the loan mean you receive less money but repay the full amount. Spread over the term, that raises the effective annual cost.
Is a lower APR always better?
Usually, but also compare the term and monthly payment. A longer loan with a lower APR can still cost more in total interest.
See your real personal loan rate
Checking your rate takes about 60 seconds and uses a soft credit pull — it won't affect your score.
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