Calculate APR, compare simple and compound interest, and put two loans side by side to better understand estimated borrowing costs.
Compare borrowing costs, calculate interest and see how different loan terms can change the estimated amount you pay over time.
Estimate an annual percentage rate using the amount financed, interest rate, loan term and certain upfront loan fees.
Calculate APR →Calculate simple interest using principal, interest rate and time, and estimate the total value or repayment amount.
Calculate simple interest →Estimate how money may grow or how interest may accumulate when interest is compounded over time.
Calculate compound interest →Compare monthly payments, total interest and estimated repayment cost for two different fixed-rate loan scenarios.
Compare loan options →Interest calculations can answer different questions depending on whether you're evaluating borrowing costs, comparing two loans or measuring how interest accumulates over time.
If you're comparing loan offers, APR and total repayment cost are especially useful because the lowest advertised interest rate does not always mean the lowest overall borrowing cost.
An interest rate generally reflects the cost of borrowing the principal, while APR may provide a broader estimate of borrowing cost because certain fees may be included. When comparing loan offers, reviewing the payment, APR, term and total estimated interest can provide a more complete picture.
APR stands for annual percentage rate. It is intended to express an annualized cost of borrowing and may include certain fees in addition to the stated interest rate, depending on the loan.
Simple interest is calculated using the original principal amount, the interest rate and the length of time the money is borrowed or invested.
Compound interest is calculated on the principal plus previously accumulated interest. The frequency of compounding can affect how quickly the balance grows over time.
Loan amount, interest rate, fees and repayment term can all affect the total cost. A longer term may lower the monthly payment while increasing total interest paid.
Both can be useful. Monthly payment can help with budgeting, while APR, total interest and total repayment cost can provide additional context when comparing borrowing options.