Mortgage APR Calculator

Select currency, enter value and click on calculate. Result will be displayed.

Currency:

Total Loan Amount:

Annual Interest Rate:

Number of Points Paid:

Repayment Period:

Years

Processing Fees:

Other Costs:

Mortgage Fees:

Monthly Payment:

Effective Monthly Payment:

APR (Annual percentage rate):

A Mortgage APR Calculator is a tool designed to help borrowers understand the true cost of a mortgage loan by calculating the Annual Percentage Rate (APR). The APR is a broader measure of the cost of borrowing than the interest rate alone, as it includes not only the interest on the loan but also other costs like closing fees, origination fees, insurance, and other charges that might come with the mortgage.

How the Mortgage APR Calculator Works:
Inputs:

Loan Amount: The total amount you're borrowing for the mortgage.
Interest Rate: The percentage of interest charged by the lender on the loan amount.
Loan Term: The length of time over which the loan will be repaid (e.g., 15 years, 30 years).
Upfront Costs: Additional costs such as closing fees, lender fees, insurance, and other associated charges.
Monthly Payment: The regular monthly payment you'll make to repay the loan.
Outputs:

APR: The resulting APR, expressed as a percentage, includes both the interest rate and the other associated costs. This gives a more accurate picture of the overall cost of the loan.
The APR is generally higher than the interest rate because it incorporates these additional costs. For example, you might see a loan with an interest rate of 4.0%, but the APR could be 4.2% when accounting for fees.

Why Use an APR Calculator?
Comparing Loans: It helps you compare different mortgage offers from various lenders, as the APR will give you a clearer idea of which loan might be cheaper in the long run when considering both the interest and other fees.
Understanding Total Costs: It shows you the true cost of borrowing by factoring in both interest and extra costs that are part of the loan.