APR calculator
Enter a rate with the points and lender fees attached to it. The result is the annual percentage rate a lender would disclose under Regulation Z, plus the dollar cost behind it.
Annual percentage rate
6.590%
$3,245.00 in prepaid finance charges lifts your 6.500% note rate to an APR of 6.590%.
- Monthly payment
- $2,212.24
- Amount financed
- $346,755.00
- Finance charge
- $449,650.71
- Total of payments
- $796,405.71
How to read these numbers
Annual percentage rate — your note rate with the lender’s charges folded in, assuming you hold the loan for its full term.
Amount financed — the loan amount minus what you pay the lender up front. It is the money you actually receive the use of, and the basis the APR is solved against. Lender credits work in reverse and can push it above the loan amount.
Finance charge — the total dollar cost of the credit over the full term: all interest plus the prepaid charges. On a 30-year mortgage it is routinely larger than the amount borrowed, which is worth seeing plainly once.
Total of payments — every payment added up, ignoring the money you contribute at closing.
What to put in the fee boxes
Include what the lender charges to make the loan: discount points, origination, underwriting, processing, document preparation, and mortgage insurance premiums.
Leave out what you would pay to third parties for services you can shop for: appraisal, credit report, title insurance, settlement, recording, taxes and homeowners insurance. Those are real costs — they are simply not part of the APR, and putting them here would produce a number you cannot compare against a lender’s disclosure.
If you are checking a Loan Estimate, the figures you want are in section A (origination charges) and section B, plus any prepaid interest and mortgage insurance.
A word of caution about the result
This calculator uses the actuarial method of Appendix J with equal monthly payments and a regular first period. That covers ordinary fixed-rate mortgages and installment loans, and it matches lender disclosures within the tolerance Regulation Z allows.
It will not reproduce the APR on an adjustable-rate loan, a loan with an irregular first payment period, or one with a payment schedule that changes. For those, the disclosure your lender provides is the authoritative number.