Total Fees + Points
$8,500.00
APR Advanced Calculator
Calculate APR including multiple fee items and discount points.
Effective APR
6.78%
Points Cost
$3,000.00
Monthly Payment
$1,896.20
Stated Rate
6.50%
How to use the APR Advanced Calculator
The APR Advanced Calculator is free and runs entirely in your browser — no sign-up, and nothing you enter leaves your device. It opens pre-filled with a realistic example, so you can see how it works before replacing any figure with your own; the results update as you type. Press Calculate to refresh the result panel, or Reset to return to the example.
The inputs it asks for:
- Loan Amount — a dollar amount.
- Stated Interest Rate — a percentage (enter 6 for 6%).
- Term (Years) — a number.
- Origination Fee — a dollar amount.
- Other Closing Fees — a dollar amount.
- Discount Points — a percentage (enter 6 for 6%).
The formula
APR restates a loan's true cost as a single rate by treating the fees as money you never received. It keeps the payment set by your stated rate, subtracts every fee and point from the amount you actually get, and solves for the rate that links the two:
APR = the rate where Payment = amortize(net amount, APR, term)
Net amount = Loan − origination − other fees − points cost- Payment
- computed from the stated rate on the full loan
- Net amount
- the loan minus all fees and points — what actually reaches you
Because the payment is fixed but the amount financed is effectively smaller, the APR comes out above the stated rate — the more you pay in fees and points, the wider that gap. This advanced version itemizes origination, other closing fees and discount points separately.
Worked example
Using the example values — Loan Amount $300,000.00, Stated Interest Rate 6.5%, Term (Years) 30, Origination Fee $3,000.00, Other Closing Fees $2,500.00, Discount Points 1% — the APR Advanced Calculator returns a Effective APR of 6.78%. It also reports Total Fees + Points ($8,500.00), Points Cost ($3,000.00), Monthly Payment ($1,896.20).
Prefer your own numbers? Change any field above and this recomputes instantly.
Key terms
- APR (annual percentage rate)
- A loan's cost as a rate, including fees — the legally comparable figure.
- Stated (note) rate
- The headline interest rate before fees.
- Discount points
- An upfront fee (1% of the loan each) that buys a lower rate.
- Origination fee
- The lender's charge for processing the loan.
Frequently asked questions
Why is the APR higher than the stated rate?
Because fees and points are money you pay but don't get to borrow. Spread over the loan, they raise the effective rate above the note rate.
Is APR the best way to compare loans?
It's the standard, and better than comparing rates alone. But it assumes you keep the loan its full term — if you'll repay or refinance early, upfront fees weigh more heavily than APR suggests.
Do points and fees count the same?
In APR, yes — both are upfront costs subtracted from what you receive. This calculator lets you enter points and fee items separately for clarity.