finance ToolUpdated 2026-09-20
APR Calculator (Annual Percentage Rate)
The nominal interest rate only accounts for the interest charged on your balance, while the APR reflects the total annual cost of borrowing, including points, processing fees, and origination charges.
Frequently Asked Questions
Why is APR higher than the interest rate?
APR includes both the regular interest rate and one-time fees (origination, doc fees, points), expressing total borrowing cost as an annualized percentage.
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