APR Calculator
Effective rate from nominal.
Estimates only — always confirm the figures with your lender or a licensed professional before you commit.
This tool gives approximate results for planning only. It is not financial advice. Verify every number against your official loan, tax, or payroll documents.
Enter the values and press Calculate.
How to use APR Calculator
The nominal rate understates true cost when interest compounds. This tool shows the effective APR you actually pay or earn.
Open APR Calculator on toolpermarket and enter your values above.
Enter the nominal annual rate and how often it compounds per year in the fields above, then press Calculate.
Read the result below the form. You can change any input and press Calculate again to compare scenarios.
Worked example. A 5 percent nominal rate compounded monthly is about 5.12 percent effective APR.
When to use APR Calculator. Use it to compare loans or deposits where compounding frequency differs.
When you actually reach for this
- Use it to compare loans or deposits where compounding frequency differs.
Where this tool stops being accurate
- Assumes a fixed rate for the whole term and equal payments; it excludes taxes, insurance, and fees, and does not model rate changes.
- Results depend on the exact inputs - a small rate or term change can flip the cheaper option.
Frequently asked questions
Why is APR higher than the nominal rate?
Because compounding adds interest on interest within the year, raising the effective rate. For anything binding, check with a qualified professional about your specific situation.
What if it compounds once a year?
Then the effective APR equals the nominal rate exactly. For anything binding, check with a qualified professional about your specific situation.
Does this include taxes and insurance?
No. It models principal and interest from the rate and term you enter; add taxes, insurance, and fees separately for the true monthly cost. For anything binding, check with a qualified professional about your specific situation.