You can use this loan APR calculator to estimate the effective interest rate on a personal loan. The calculator uses out of pocket costs associated with an application and other fees to figure out an effective monthly payment on the loan. Based on that new payment, the APR on the loan can be determined.

Calculator Definitions

The variables used in our online calculator are defined in detail below, including how to interpret the results.

The total amount of money borrowed for this loan, also referred to as the principal on the loan.

Annual Interest Rate (%)

This is the annual interest rate on the loan. This is not the APR, which is going to be calculated in this example.

Term of the Loan (Years)

This is the original term or length of the personal loan, stated in years. The most common terms for personal loans range from 3 to 10 years.

Application / Processing Fees ($)

This is where you want to enter any application or processing fees associated with the loan.

Other Fees / Costs ($)

If there are any other out-of-pocket costs associated with the loan itself, this is where you would enter that information.

Total Loan Fees ($)

The total loan fees are the total of the application fees and other costs associated with the loan itself.

Monthly Payment on Loan ($ / Month)

This is the calculated monthly payment due on the loan or money borrowed. It does not include fees and other costs associated with the loan.

Effective Monthly Payment ($ / Month)

This is the effective monthly payment, which takes into consideration fees and other costs associated with this loan. The effective monthly payment is the basis for the APR calculation.

Calculated APR (%)

The calculated APR is determined using the annual interest rate on the loan plus fees and other costs. The APR is useful when comparing two or more loans with different interest rates and fee structures.

Disclaimer: These online calculators are made available and meant to be used as a screening tool for the investor. The accuracy of these calculations is not guaranteed nor is its applicability to your individual circumstances. You should always obtain personal advice from qualified professionals.