Compare loan payments, interest and fees together

Use APR and interest rate for the right task

The contractual interest rate drives this calculator’s monthly interest. APR is a broader annualized borrowing-cost measure that can include additional fees. Compare APR with APR in the disclosures; do not substitute a fee-inclusive APR for the interest-rate input and then add the same fees again.

Our tool assumes the entered cash fees are paid separately. If a fee is financed or withheld from disbursement, the principal, net proceeds and cash timing need separate attention. Ask for the amount you actually receive as well as the amount you owe.

Make the alternatives consistent

Run a shorter and longer term on the same principal. A lower payment over more months can produce more interest. For a planned early sale or refinance, compare the remaining balance and any exit charge instead of assuming every loan lasts to maturity.

• Record whether the rate is fixed and how payments are calculated.
• Separate required costs from optional add-ons.
• Read prepayment, late-payment and balloon terms.
• Check that the modeled structure matches the actual agreement before using the result.

Sources and method

• CFPB: The difference between an interest rate and APR
• CFPB: Compare auto loan offers

Worked examples use the stated hypothetical assumptions. Source links support the general definitions and rules; they do not verify a specific product, offer or individual outcome.