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Free · Loan APR · Monthly payment

APR calculator

Calculate the monthly payment and total cost of any loan from its APR. Works for mortgages, auto loans, personal loans, credit cards, and student debt.

APR vs effective rate gap by compound frequency · TILA Regulation Z · CFPB Credit Card Cost Report
22% APR credit card = 24.36% effective annual rate
Credit card APRs compound daily on the average daily balance. A 22% nominal APR has an effective annual rate of 24.36% — the 2.36-point spread is the part lenders aren't required to advertise. On a $5k revolving balance that's $118/year of 'hidden' interest the APR number doesn't show.
We surface effective rate alongside APR by default because the APR-only display is what the regulation requires, not what actually costs you money.

Typical APRs by loan type (2026)

Loan typeAPR (good credit)APR (subprime)
30-year mortgage6.50–7.25%8.0–9.5%
Auto loan (new)5.50–7.50%12–18%
Auto loan (used)7.00–9.00%15–22%
Personal loan8.00–12%18–36%
Credit card18–22%26–32%
Student loan (federal)~6.5% (fixed)Same

APR vs interest rate vs APY

Interest rate is the cost of borrowing the principal. APR adds mandatory fees (origination, discount points) and expresses everything as one annual cost.APY is for deposits, accounting for compounding.

Always compare loans on APR, not interest rate — APR catches the lender who advertises a low rate but loads up fees.

APR cost over the term

  • $25k auto loan at 7% / 5 yr: $495/mo, $4,696 total interest
  • $25k auto loan at 12% / 5 yr: $556/mo, $8,360 interest
  • $300k mortgage at 7% / 30 yr: $1,996/mo, $418k interest
  • $10k credit card at 22% / minimum payment: 28+ years to pay off, $20k+ interest

APR Calculator FAQ

What's the difference between APR and interest rate?

Interest rate is the cost of the principal only. APR includes interest plus mandatory fees (origination, discount points, mortgage insurance) expressed as an annualized rate. APR is always equal to or higher than the interest rate.

How is APR calculated on a credit card?

Most credit cards use a daily periodic rate (APR ÷ 365) applied to your daily balance. So a 21.99% APR is about 0.06% daily on whatever you owe. Pay your statement balance in full each month and APR doesn't apply — no interest is charged.

Can I negotiate my APR?

Yes, often. Credit cards: call and ask, especially if you've been a customer for years. Personal loans and auto loans: shop 3–5 lenders and let them compete. Mortgages: lock in your rate during a refinance shopping window.

Is a fixed APR or variable APR better?

Fixed gives certainty — payment doesn't change. Variable (tied to prime rate or SOFR) can drop if Fed cuts rates, but rises if rates climb. Fixed is safer; variable can be cheaper in falling-rate environments.

What's a teaser APR or 0% intro APR?

A promotional APR (often 0%) for a fixed period (12–21 months) on credit card balance transfers or new purchases. After the intro period, APR jumps to the regular 18–24% range. Useful for paying down debt — destructive if you don't pay it off before the intro ends.

How do I lower my APR over time?

Build credit (pay on time, lower utilization), shop competing offers and use them as leverage, refinance when rates drop, and consolidate high-APR debt into lower-rate products (HELOC, personal loan, balance transfer).

Related calculators

APY calculator
Effective rate on savings products.
Auto loan calculator
Project auto loan APR.
Credit card payoff calculator
Crush high-APR card debt.
Mortgage calculator
Full mortgage APR breakdown.

Methodology and editorial standards

Each calculator uses its own inputs and method. Review the labels, units and assumption notes shown with the result. Costs, taxes, fees, benefits and other factors are not modeled unless the page or calculator explicitly says they are. A fixed-rate projection is a scenario, not a forecast or personalized recommendation.

The editorial standards explain how Snowballr reviews calculators and sources. The sources index links to references used across the site. To report an error or suggest a correction, use the contact page.