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True APR Calculator Including Fees

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An origination fee means you get less money than you borrow but repay the full amount, so the real cost is higher than the quoted rate. This calculator finds the rate that matches the money you actually receive to the payments you make.

By the CalcKite team · Last reviewed 19 Oct 2026 · Formula · Cite · Embed

True APR Calculator Including Fees

Find the true APR of a loan when origination or upfront fees reduce the money you actually receive, and see the total cost of borrowing.

Monthly payment = loan × r × (1 + r)^n ÷ ((1 + r)^n − 1), at the quoted rate True monthly rate i solves: money received = payment × (1 − (1 + i)^−n) ÷ i True APR = i × 12; effective annual rate = (1 + i)^12 − 1

Example: $10,000 over 36 months at 10% with a $500 fee taken out. Monthly payment: $322.67; Money you actually get: $9,500; Total you repay: $11,616; Total cost of borrowing: $2,116; True APR with fees: 13.56%.

Understand the resultHow it works, worked example, formula and FAQ
Related calculatorsPersonal Loan · Loan Comparison · Loan Payment

How to use the True APR Calculator Including Fees

Enter the loan amount, the upfront or origination fee and how it is paid: taken out of the money you receive, added to the loan, or paid in cash. Add the quoted interest rate and the term in months. The green box shows the true APR with fees included, next to the quoted rate, and the rows show your payment, the cash you get and the total cost.

Worked examples

$10,000 over 36 months at 10% with a $500 fee taken out

Monthly payment$322.67
Money you actually get$9,500
Total you repay$11,616
Total cost of borrowing$2,116
True APR with fees13.56%

A 5% fee on a 3-year loan adds about 3.5 points to the rate. On a longer loan the same fee adds less, because it is spread over more years.

Check: the same loan with no fee

True APR10.00%, the same as the quoted rate
Effective annual rate (monthly compounding)10.47%

Assumptions and limits

  • Payments are equal and monthly, with no balloon payment.
  • The true APR here is a planning measure. The APR lenders must disclose follows rules that differ by loan type and country, so it can differ slightly.
  • Late fees and optional insurance aren’t included.

Formula

Monthly payment = loan × r × (1 + r)^n ÷ ((1 + r)^n − 1), at the quoted rate True monthly rate i solves: money received = payment × (1 − (1 + i)^−n) ÷ i True APR = i × 12; effective annual rate = (1 + i)^12 − 1

Frequently asked questions

What is an origination fee?

A one-time charge for processing a loan, often 1–8% of the amount on personal loans. It is usually taken out of the money you receive, so you borrow $10,000 but get $9,500.

Why is APR higher than the interest rate?

APR includes fees as well as interest. Because you pay interest on the full loan but receive less cash, the effective rate on the money you actually get is higher.

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Results are estimates for information only and are not financial, tax or legal advice. Tax rules, interest rates and fees change, so confirm important numbers with your bank, employer or a qualified adviser. Read our disclaimer.