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Why Use the APR Calculator
- True cost comparison — includes fees, not just the interest rate
- Multiple loan types — personal loans, mortgages, auto loans, credit cards
- Break-even analysis — find when a lower-rate/higher-fee loan becomes cheaper
- Side-by-side comparison — compare multiple loan offers simultaneously
- Reverse calculation — find the rate/fee combination that achieves a target APR
Use the APR Calculator at TechConverter.me to compare loan offers accurately and understand the true cost of borrowing before signing any loan agreement.
Examples
Example 1: Personal Loan APR with Origination Fee
Loan amount: $20,000
Interest rate: 8.5% nominal
Origination fee: 2% ($400)
Term: 36 months
Calculation:
Effective loan received: $20,000 - $400 = $19,600
Monthly payment: $632.07
APR: 9.73%
The 2% origination fee raises the effective APR from 8.5% to 9.73%.
Always compare APR, not just the stated interest rate.Example 2: Mortgage APR with Closing Costs
Loan amount: $350,000
Interest rate: 6.75%
Closing costs: $8,500 (origination, points, fees)
Term: 30 years
APR: 6.98%
The closing costs add 0.23% to the effective APR.
For a 30-year loan, this difference is significant.
Break-even analysis:
If you sell or refinance within 5 years:
Higher-rate/no-fee loan may be cheaper
If you keep the loan 10+ years:
Lower-rate/higher-fee loan saves more overallExample 3: Credit Card APR Types
Credit card APR breakdown:
Purchase APR: 22.99%
Cash advance APR: 29.99% (higher — avoid cash advances)
Balance transfer APR: 0% for 15 months, then 22.99%
Penalty APR: 29.99% (triggered by late payment)
Daily periodic rate (purchase APR):
22.99% / 365 = 0.06299% per day
Interest on $1,000 balance for 30 days:
$1,000 × 0.0006299 × 30 = $18.90