APR Calculator

Calculate Annual Percentage Rate

Calculate the Annual Percentage Rate and how it compares with APY with this APR Calculator.


Periods per Year:
(Annual=1, Monthly=12, Weekly=52, Daily=365)
Interest Rate Per Period:

How do you calculate Annual Percentage Rate?

To find the APR for a loan use this formula:
APR = r * p

r = Interest Rate per Period

p = Number of Periods/Year

Example: APR on a loan with a periodic interest rate of .80% and 12 periods per year. (Monthly):



Calculated out, this gives us... .80 * 12 = 9.6%

But, we're not done yet. Many loans will advertise APR vs APY. This is Annual Percentage Yield. APR doesn't take into account the compounding nature of a loan. In our example, you would be charged .08% interest per month. Well, the interest is charged on top of old interest. This is called compounding interest. Try comparing your answer for APR with the same inputs for APY with the APY Calculator. You can also learn more about compounding interest by practicing with the Compound Interest Calculator

More Resources...

APR Video
APR Wikipedia Entry
APR Tutorial