APR Comparison Calculator
Two loans with the same headline APR can still cost different amounts once origination fees, term differences, and payment schedules are baked in. This calculator takes the loan amount, term, interest rate, and fees for two or three offers and shows the all-in monthly payment, total cost, and effective APR side by side — the only fair comparison.
How is this calculated?
For each offer, fees are either added to the loan balance or paid upfront depending on lender structure, then payments are calculated using the standard amortization formula. The effective APR is the rate that makes the present value of all repayments equal the cash-in-hand the borrower actually receives, found by numerical iteration. The Truth in Lending Act requires lenders to disclose APR including required fees; this calculator lets you replicate that calculation for any offer to verify what you’re being shown.
Frequently Asked Questions
Why does the same APR not always mean the same cost?
APR normalizes rate and required fees into one figure, but two loans at the same APR can still differ if their terms differ — a longer term means more interest in absolute terms even at the same APR. Always compare the total amount payable as well as the headline rate.
What's the difference between APR and APY?
APR (Annual Percentage Rate) is used for borrowing and includes required fees. APY (Annual Percentage Yield) is used for savings and shows the effective annual return after compounding. They're the same arithmetic concept applied to opposite sides of the balance sheet — APR tells you what you pay; APY tells you what you earn.
Are origination fees ever worth paying?
Sometimes. A mortgage with a 1-point origination fee and a 0.25% lower rate can easily beat a no-fee loan once the loan size and time-to-payoff are large enough. Run the break-even — points usually pay back in 4–7 years on a 30-year mortgage if you stay long enough.
Where do I find the APR on an offer?
Federal Truth in Lending Act disclosures require it on every loan estimate, credit card offer, and auto loan contract. For mortgages, look at the Loan Estimate and Closing Disclosure. For credit cards, the Schumer box. For auto loans, the retail installment contract — never sign without seeing the APR clearly stated.
Last updated: May 2026 · Rates sourced from IRS