APR Calculator
Enter what you borrow, any upfront fee and either the interest rate or the monthly payment. The APR shows the full yearly cost so offers can be compared fairly.
This is an estimate to help you plan and not advice. The lender's own APR is the figure to rely on.
Worked examples
A loan with no fee
£10,000 over 3 years at 12% a year
£332.14 a month, APR 12.68%
Interest at 1% a month adds up to 12.68% over a year.
The same loan with a £250 fee
£10,000, £250 fee, 3 years at 12%
APR 14.67%
The fee reduces the £10,000 you receive to £9,750, which raises the yearly cost.
About APR Calculator
APR is the number lenders must show you so that loans can be compared. It folds the interest and any compulsory upfront fee into one yearly rate, with interest added each month. Two loans can show the same interest rate yet have quite different APRs once a fee is added, and the APR is the figure that exposes the difference.
This calculator lets you start from either end. If you know the interest rate, it works out the monthly payment for you and then the APR including your fee. If a lender has only quoted a payment, enter that instead and the page finds the rate hidden inside it. Either way you also see the total of all payments and the total cost of the credit.
How to use APR Calculator
- Enter the amount you will borrow and any fee you must pay upfront to get the loan.
- Enter the length of the loan and choose whether it is counted in years or months.
- Choose whether you know the interest rate or the monthly payment, then type it in.
- Read the APR, the monthly payment and the total cost of credit, and compare with other offers.
Common uses
- Comparing two personal loan offers with different fees
- Checking the real cost of a car or furniture finance deal
- Finding the rate behind a quoted monthly payment
- Seeing how much an arrangement fee adds to the yearly cost
Sources
Last reviewed 18 October 2026.
Frequently asked questions
What does APR mean?
APR stands for annual percentage rate. It is the yearly cost of borrowing, including interest and compulsory fees, shown as a percentage of the amount you borrow. Lenders in the UK must display it, so offers can be compared on the same basis.
Why is the APR higher than the interest rate?
Two things raise it. Interest is added to the balance each month, which makes the effective yearly rate higher than the stated one, and any upfront fee reduces the money you actually receive while you still repay the full amount. Both increase the yearly cost.
Should I include optional extras in the fee?
No. APR covers the costs you must pay to get the credit, such as an arrangement fee. Optional extras such as payment protection are not part of the figure, so leave them out, or the answer will be higher than the lender's.
Will this match the APR on my loan agreement?
It should be very close for a loan with equal monthly payments. The lender's agreement is the official figure, since lenders can have rounding rules, payment dates and other details that this page does not model.
Is a lower APR always better?
For loans of the same length and amount, yes. Compare the total cost of credit as well, because a longer loan can have a lower monthly payment but costs more in total, and APR does not show that on its own.