APR Calculator

Back into the interest rate that makes an amortizing loan’s payment pencil out — enter principal, payment, and term. Click any i for detail.

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Loan & payment

Loan amount ($)
i
Loan amount

Principal being financed (amount you owe at start).

Payment amount ($/mo)
i
Payment

Fixed monthly principal & interest payment.

Term value
i
Term

Length of the loan in months or years (use the unit selector).

Term unit
i
Unit

Choose years or months for the term value above.

How to use this calculator

  1. Enter the loan principal.
  2. Enter the fixed monthly P&I payment.
  3. Set term in years or months.
  4. Read the implied APR and interest totals.

Results explained

Headline APR is the annual rate that makes standard amortizing PMT match your payment. It is not a Truth-in-Lending APR that folds in fees.

Quick reference: APR solve

Solver uses the amortizing identity.

ItemDetail
IdentityPMT(P, APR, n) = payment
MethodBisection + Newton polish
0% checkPayment must be at least principal ÷ months

For payment from rate, use a mortgage payment tool instead.

How the estimate is built

Find APR such that Calcscape.loan.pmt(loan, APR, months) equals your payment.

Example scenario

$250,000 loan, $1,580/mo, 30 years → roughly mid-6% APR depending on exact payment.

FAQ

Is this the lender APR on my Loan Estimate?

Not necessarily — this ignores points and finance charges baked into official APR disclosures.

What if payment is too low?

If payment cannot amortize the loan even at 0%, the solver shows an error.

Months vs years?

Use the unit selector; 30 years = 360 months.