APR Calculator
Find a loan's true APR once fees are included, convert an interest rate to APY (and back) for any compounding frequency, and model an annuity from savings to monthly payout.
APR calculator
APY calculator: annual percentage yield
Annuity calculator: savings and payout
APR vs APY
APR (annual percentage rate) is the yearly cost of a loan including required fees, as defined by the Truth in Lending Act (Regulation Z). APY (annual percentage yield) is what a deposit actually earns in a year with compounding, required on savings accounts and CDs by the Truth in Savings Act. Loans quote APR; savings quote APY.
How to calculate APR with fees
The APR is the rate at which the payments you make equal the money you actually received. A $20,000, 48-month loan at 9% has a $497.70 payment; with $600 of fees you get $19,400, so the APR is about 10.6%. The same fee on a longer loan raises the APR less.
Calculate annual percentage yield
APY = (1 + APR ÷ n)n − 1, where n is compounding periods per year. At 4.5%, monthly compounding gives 4.594%, daily 4.602% and continuous 4.603%. To compare savings accounts (a savings calculator question), compare APYs.
Annuity calculator: accumulation and payout
The accumulation phase adds deposits and growth; the payout phase turns the balance into a level monthly income with the loan-payment formula in reverse. $50,000 plus $500 a month at 5% for 20 years grows to about $340,000, enough for about $1,994 a month for 25 years at 5%. Commercial annuities (fixed, indexed, immediate) price payouts with mortality and fees; get quotes to compare. To calculate annuity calculator results for an insurance quote, use the payout rate the insurer gives.
Also searched as: annual APR calculator and annual percentage rate APR calculator.
Common questions
What is the difference between APR and APY?
APR is a loan's yearly cost including fees; APY is a deposit's yearly earnings including compounding.
How do I calculate APY?
(1 + rate ÷ periods)^periods − 1. 4.5% compounded monthly is 4.594%.
How do I calculate APR with fees?
Find the rate at which your payments equal the amount you actually received after fees.
Is a higher APY better?
Yes for savings; for loans, a lower APR is better.
How much monthly income does an annuity pay?
About $1,994 a month for 25 years from $341,000 at 5%, before fees or insurer pricing.
Sources
- CFPB: What is the difference between APR and APY?
- CFPB: Regulation Z, Truth in Lending (12 CFR 1026.22)
- Investor.gov: Annuities
Related
General information, not financial, tax or legal advice. Check important numbers with the official source before acting on them.