APR Calculator guide
APR Calculator: The True Cost of a Loan With Fees
Use our APR calculator to work out the annual percentage rate of a loan once arrangement or broker fees are included.
By the AllCalculator editorial teamUpdated 16 October 20261 min read
A low interest rate can hide high fees. The APR (annual percentage rate) combines both into one figure, so you can compare loans fairly. Our APR Calculator works it out.
How to use the calculator (APR Calculator)
- Enter the amount borrowed and the interest rate.
- Enter the term in months.
- Enter any upfront fees, and choose whether they're added to the loan or paid upfront.
How it works
The calculator works out your monthly payment, then finds the rate at which those payments exactly repay the money you actually receive. That rate, compounded over a year, is the APR.
A worked example
With the calculator's default settings, borrowing £15,000 at 6.5% over 60 months, with a £500 fee added to the loan:
- Monthly payment: £303.28
- Total cost of credit: £3,196.52
- APR: 8.2%, compared with 6.7% without the fee
Frequently asked questions
What's a representative APR?
The rate lenders advertise. By law, at least 51% of people accepted must get that rate or better. You may be offered a higher rate.
Does APR include everything?
It includes interest and compulsory fees, but not optional extras or charges for missing payments.
APR or AER?
APR is for borrowing; AER (annual equivalent rate) is for savings.
To find the rate from a monthly payment, try our Interest Rate Calculator.
Sources and further reading
Links open official and independent websites in a new tab.
This guide is general information to help you understand your options. It isn't financial, tax, legal or building advice and doesn't take your personal circumstances into account. Figures were checked when the guide was last updated and can change, so confirm anything important with GOV.UK, HMRC, a regulated adviser or a qualified tradesperson.