APR Analysis Calculator for Loan Cost Review

Calculator Inputs

Enter the loan details below. Results appear above this form after submission.

Loan Amount

Nominal Interest Rate (%)

Term Years

Extra Months

Payment Frequency

Upfront Fees

Financed Fees

Fee Per Payment

Balloon Payment

Plotly Graph

The chart compares remaining balance and cumulative interest across the payment schedule.

Example Data Table

Scenario	Loan Amount	Rate	Term	Frequency	Upfront Fees	Financed Fees	Fee Per Payment	Balloon
Auto Loan Review	$20,000.00	10.50%	5 Years	Monthly	$300.00	$500.00	$2.50	$0.00
Balloon Loan Review	$35,000.00	8.25%	4 Years	Monthly	$450.00	$650.00	$3.00	$8,000.00
Short Term Credit	$8,500.00	13.90%	3 Years	Biweekly	$175.00	$225.00	$1.25	$0.00

Formula Used

1 Periodic note rate = nominal annual rate ÷ payments per year.

2 Note amount = loan amount + financed fees.

3 Amount financed = loan amount − upfront fees.

4 Regular payment with balloon:

Payment = (PV − Balloon / (1 + i)ⁿ) × i ÷ (1 − (1 + i)⁻ⁿ)

5 APR solve step finds the periodic rate that makes discounted cash outflows equal the amount financed:

Amount Financed = Σ[(Payment + Fee) / (1 + r)^k] + Balloon / (1 + r)ⁿ

6 Annual APR = periodic APR × payments per year.

7 Effective APR = (1 + periodic APR)^{payments per year} − 1.

How to Use This Calculator

Enter the loan amount before any deductions.
Add the nominal interest rate from the lender terms.
Enter the loan term using years and extra months.
Select how often payments are made.
Place prepaid charges in upfront fees.
Place rolled-in charges in financed fees.
Add any recurring servicing fee charged each payment.
Enter a balloon amount only if a large final payoff exists.
Submit the form to view APR, costs, schedule, and graph.
Use the CSV and PDF buttons to export the analysis.

Frequently Asked Questions

1. What does APR show that the note rate misses?

APR includes prepaid charges, financed fees, and recurring payment fees. The note rate only reflects stated interest, so APR better shows the real borrowing cost.

2. Why can APR be higher than the interest rate?

APR rises when the lender adds origination fees, service fees, document fees, or other finance charges. Those costs reduce proceeds or increase repayment without changing the advertised note rate.

3. What are upfront fees in this calculator?

Upfront fees are finance charges paid or deducted at closing. They reduce the amount actually received by the borrower, which usually pushes APR upward.

4. What are financed fees?

Financed fees are charges added into the balance. They increase the note amount and payment stream, which raises total interest and can also increase APR.

5. How does a balloon payment affect APR?

A balloon leaves part of the principal unpaid until the last due date. That changes the cash flow pattern and can materially change the calculated APR and risk profile.

6. Why does payment frequency matter?

Different frequencies change how often interest is assessed and how quickly principal declines. Weekly, biweekly, monthly, and quarterly schedules can produce different payment amounts and APR patterns.

7. Is effective APR the same as nominal APR?

No. Nominal APR annualizes the solved periodic APR. Effective APR compounds that rate across the payment year, so it usually comes out slightly higher.

8. When should I compare two loans with this tool?

Use it whenever loans have different fees, frequencies, or payoff structures. APR analysis helps reveal the true cost even when monthly payments appear similar.