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APR Calculator

The interest rate sets your payment. The APR adds points and certain lender fees to show the loan's cost as a yearly rate, which makes offers easier to compare.
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Percent of the loan. One point is 1%.

Origination, underwriting and similar. See your Loan Estimate.

APR

7.359%

0.079% above the 7.28% interest rate

  • Monthly principal and interest$2,189.48
  • Points and fees (finance charges)$2,500
  • Amount financedLoan amount minus finance charges$317,500

APR assumes you keep the loan for the full term. If you sell or refinance earlier, the points and fees are spread over fewer years and the effective cost is higher.

APR

7.359%

Details

APR versus interest rate

The interest rate is what you pay on the balance. The APR is the yearly rate that equates all of your payments to the amount you actually receive after the points and certain lender fees are subtracted. Federal law requires lenders to disclose it so offers can be compared.

Two loans with the same interest rate can have very different APRs if one charges more points or fees. A lower rate with high costs can have a higher APR than a slightly higher rate with low costs.

What counts, and what does not

APR typically includes discount points, origination and underwriting fees, and mortgage insurance for some loans. It generally does not include appraisal, title insurance, recording fees or homeowners insurance. Your Loan Estimate shows the lender's own APR, which is the figure to rely on.

Frequently asked questions

Is a lower APR always better?

Usually, if you keep the loan for the full term. If you expect to sell or refinance within a few years, compare total costs over that period instead, because APR spreads fees over the whole term.

Why does my lender's APR differ from this result?

Lenders include a specific list of finance charges and may treat mortgage insurance differently. Use this tool to compare scenarios and the Loan Estimate for the official figure.

Do discount points lower the APR?

Points lower the interest rate but add an upfront cost. Whether APR falls depends on how much the rate drops compared with the cost of the points.

Related calculators

Refinance break-evenFind out how many months it takes for a lower rate to repay your refinance closing costs, and whether refinancing saves money over the time you will stay.Closing costsEstimate closing costs as 2% to 5% of the price, add discount points, and see the total cash you need at closing with your down payment.Amortization scheduleSee every payment split into principal and interest, the balance by year, and how extra payments shorten the loan. Download the full schedule as CSV.

Estimates for education and planning only. TotalMonthly is not a lender or advisor; confirm figures with a licensed professional. See the methodology and disclaimer.