How we worked it out
Updated as you change the numbers.
- Payment on $100,000.00 over 120 months at 6% = $1,110.21.
- You receive $97,500.00 after fees. The APR is the rate at which 120 payments of $1,110.21 repay exactly $97,500.00: 6.563%.
Method and assumptions
APR is defined in US law (Regulation Z) as the rate that makes the payments equal the amount you actually get to use. The calculator finds that rate numerically for a fixed-rate loan with monthly payments. Lenders may count different fees as finance charges, so their disclosed APR can differ slightly.
Questions
What APR is a 6% loan with $2,500 in fees?
On $100,000 over 10 years with fees paid up front, about 6.56%.
Sources
Method and figures checked on . Every worked answer on this page is covered by an automated test. Found a mistake? Tell us.