One view, both offers
See what the advertised rate leaves out
APR is useful because it brings required finance charges into the rate comparison. The table also keeps the cash you actually receive visible, so a fee deducted from proceeds cannot hide behind a lower monthly payment.
| Measure | Offer A | Offer B |
|---|
Use the result
Three checks before choosing a loan
The lowest APR is a strong comparison signal, but the right offer still has to fit your cash flow and likely payoff behavior.
Compare the same amount and term
Changing both at once makes the payment look better without isolating the actual price difference.
Check cash received
If fees are deducted, you may receive less than the amount shown on the note. Make sure the proceeds cover your need.
Test your likely payoff date
A fee-heavy offer needs time to recover its upfront cost through interest savings.
Transparent calculation
How this APR calculator works
For fixed monthly payments, the calculator solves for the monthly rate that makes the present value of every scheduled payment equal the borrower’s net proceeds. It then multiplies that periodic rate by 12.
Net proceeds = Σ [Payment ÷ (1 + monthly APR rate)ᵗ], for t = 1…n
The monthly APR rate is solved with a bounded binary search. The payment itself uses the contractual interest rate and the balance financed. Results are estimates, rounded for display.
Fees deducted or paid upfront
They reduce net proceeds for the APR calculation but do not increase the balance used to calculate the monthly payment.
Fees financed
They are added to the payment balance while the borrower still receives the requested loan amount.
Built to be checked
Offer-by-offer payment schedule
Review the first year and every year-end checkpoint. Download the full monthly schedule if you want to reproduce the totals in a spreadsheet.
| Month | A payment | A interest | A balance | B payment | B interest | B balance |
|---|
Know the limits
What this estimate does—and does not—include
Fixed-rate installment loan
The model assumes equal monthly payments, no missed payments and no variable-rate changes.
Required finance charges only
Optional products, late fees and costs not required to obtain the credit should not be entered as APR fees.
Lender disclosure controls
Use the official loan disclosure for a final decision. Timing rules and fee treatment can differ by product and jurisdiction.
Educational estimate. This calculator is not a lender quote, financial advice or a compliance tool. Verify the disclosed APR, amount financed, finance charge and payment schedule with the lender.
Common questions
APR calculator FAQs
What is the difference between APR and interest rate?
The interest rate applies to the loan balance. APR annualizes the interest plus certain required finance charges, so a loan with a lower advertised rate can still have a higher APR.
What does 7.99% APR mean?
It is an annualized measure of borrowing cost under the disclosed repayment schedule. It is not simply a flat 7.99% fee on the original balance; interest is generally charged on the declining balance.
Can I use this for a credit card?
This tool is designed for fixed installment loans with equal monthly payments. Credit cards use revolving balances and different fee rules, so use the Credit Card Payoff Calculator for that decision.
Why is APR higher when the loan term is shorter?
A required upfront fee is spread over fewer payments. That makes the fee a larger annualized cost even when the contractual rate is unchanged.
Why can my lender’s APR differ slightly?
Lenders may use exact payment dates, product-specific rules, disclosed finance-charge definitions and rounding conventions. Treat this as an independent estimate and compare it with the official disclosure.
Primary references