Mortgage APR Calculator
APR is the true cost of your mortgage — the note rate plus fees, points, and origination costs baked in. Use it to compare loan offers apples-to-apples.
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How it works
We compute your scheduled monthly P&I on the full loan at the note rate, then solve numerically (bisection) for the interest rate that produces the same payment on the net proceeds — loan minus points, origination, and other prepaid finance charges. That solved rate is your APR.
Frequently asked questions
APR vs. interest rate?
Interest rate is what accrues on the balance. APR is the rate that would produce the same monthly P&I if you had borrowed the loan minus your upfront fees. It's a cost-of-borrowing measure.
Should I always pick the lowest APR?
Usually — but only if you'll hold the loan long enough to amortize the fees. If you might refinance or sell within a few years, the note rate matters more.
Which fees go into APR?
Finance charges required by the lender: origination, discount points, mortgage insurance, and certain closing fees. Not owner's title, taxes, or optional prepaids.
Why is APR always ≥ rate?
APR spreads fees over the loan, so it adds cost on top of the note rate. If APR equals the rate, there are essentially no fees (rare).
Is APR the same across lenders?
No — federal law standardizes what's included, but lenders vary in which specific fees they classify as finance charges. Always read the Loan Estimate closely.