{
  "slug": "apr",
  "title": "APR Calculator",
  "heading": "APR Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/apr",
  "summary": "The real annual cost of a loan once fees are included.",
  "description": "The interest rate is not the cost of a loan — APR is. Points, origination, and processing fees fold into the effective rate, which is why two loans quoting the same rate can cost very different amounts.",
  "formula": "APR is the rate that equates the financed amount net of fees to the scheduled payment stream.",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=apr",
  "inputs": [
    {
      "id": "amount",
      "label": "Loan amount",
      "kind": "number",
      "hint": null,
      "default": 300000,
      "unit": "$",
      "min": 1,
      "max": null
    },
    {
      "id": "rate",
      "label": "Quoted rate",
      "kind": "number",
      "hint": null,
      "default": 6.25,
      "unit": "%",
      "min": 0.01,
      "max": null
    },
    {
      "id": "years",
      "label": "Term",
      "kind": "number",
      "hint": null,
      "default": 30,
      "unit": "years",
      "min": 1,
      "max": null
    },
    {
      "id": "fees",
      "label": "Fees and points",
      "kind": "number",
      "hint": null,
      "default": 6200,
      "unit": "$",
      "min": 0,
      "max": null
    }
  ],
  "outputs": [
    {
      "id": "apr",
      "label": "Effective APR",
      "format": "percent",
      "hint": null,
      "primary": true
    },
    {
      "id": "premium",
      "label": "Above the quoted rate",
      "format": "percent",
      "hint": null,
      "primary": false
    },
    {
      "id": "payment",
      "label": "Monthly payment",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "totalPaid",
      "label": "Total of payments",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "totalCost",
      "label": "Total cost of borrowing",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Loan amount: 300000 $",
      "Quoted rate: 6.25 %",
      "Term: 30 years",
      "Fees and points: 6200 $"
    ],
    "outputs": [
      "Effective APR: 6.449%",
      "Above the quoted rate: 0.199%",
      "Monthly payment: $1,847.15",
      "Total of payments: $664,974.58",
      "Total cost of borrowing: $371,174.58"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter loan amount ($).",
      "Enter quoted rate (%).",
      "Enter term (years).",
      "Enter fees and points ($).",
      "Read your effective apr on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "amount": 180000,
        "rate": 6.25,
        "years": 18,
        "fees": 3700
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "amount": 300000,
        "rate": 6.25,
        "years": 30,
        "fees": 6200
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "amount": 480000,
        "rate": 6.25,
        "years": 48,
        "fees": 9900
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "How does the apr calculator work?",
      "a": "The interest rate is not the cost of a loan — APR is. Points, origination, and processing fees fold into the effective rate, which is why two loans quoting the same rate can cost very different amounts. The underlying maths is: APR is the rate that equates the financed amount net of fees to the scheduled payment stream."
    },
    {
      "q": "What do I need to enter?",
      "a": "4 values: loan amount, quoted rate, term, and fees and points. Each field starts with a sensible default, so you can change one number at a time and watch the result move."
    },
    {
      "q": "What does the effective apr result mean?",
      "a": "It is returned as a percentage and updates live as you edit the inputs, so you can compare two or three versions of a scenario in a few seconds."
    },
    {
      "q": "Is this calculator free, and do I need an account?",
      "a": "Yes, it's free, and no account is required. Nothing you type is stored on our servers — the maths runs entirely in your browser."
    },
    {
      "q": "How accurate is the result?",
      "a": "It applies the standard formula exactly, so the arithmetic is precise. Results are estimates before tax, fees, and inflation unless an input explicitly covers them."
    },
    {
      "q": "Who is this tool for?",
      "a": "It's built for anyone comparing money scenarios before committing — budgeting a payment, sanity-checking a quote, or seeing what a change in rate or term actually costs."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/loan",
    "https://www.revenuelab.fyi/toolbox/mortgage",
    "https://www.revenuelab.fyi/toolbox/refinance"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — APR Calculator (https://www.revenuelab.fyi/toolbox/apr)"
}