APR Calculator: Estimate Your True Borrowing Cost

Updated August 14, 2026

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Written by Laura McMullen,  Edited by Kim Lowe and 1 other

How to use this calculator

1. Enter a loan amount: Type in or use the slider to enter the amount you need to borrow. The typical range offered by lenders is from $1,000 to $50,000, though some borrowers lend up to $100,000.

2. Add your interest rate. Personal loan rates typically range from about 7% to 36%. The interest rate alone does not include origination fees.

3. Choose a repayment term. Select a term between one and seven years. Personal loan terms generally start at two years, but they vary among lenders.

4. Add an origination fee. Among lenders that charge origination fees, the typical range is 1% to 10% of the loan amount. Use the slider to see how different origination fees impact the cost of your loan.

APR and origination fees — what are they, and how do they relate to each other?

Annual percentage rate (APR) is the total annual cost of borrowing, expressed as a yearly percentage. It accounts for both the interest rate and the origination fee, if your loan includes one.

Origination fees are upfront expenses some lenders charge to cover administrative costs. More than half of the personal loan lenders that NerdWallet surveys charge an origination fee. This fee is most commonly deducted from your proceeds. This means you receive less money in hand, but you must still repay the amount you borrowed (plus interest).

Example of how APR accounts for rates and origination fees

Say you take out a five-year, $15,000 loan with a 5% origination fee and 10% interest rate. With the 5% origination fee deducted upfront, you receive $14,250 but repay $19,122 (the amount borrowed plus interest).

When the cost of the loan is calculated based on the amount you actually receive, the annual borrowing cost (APR) is 12.24%. That’s more than 2 percentage points higher than the interest rate.

The takeaway: Because it accounts for both the interest rate and origination fee, APR can help you compare the overall cost of different loans — including those with and without an origination fee.

» COMPARE: The best personal loans

What determines your APR on a personal loan?

APRs among reputable lenders typically range from about 7% to 36%. A few factors determine the exact APR you may receive.

Your credit score and history. Lenders evaluate your credit score and history of on-time payments to creditors, among other factors.

Here's how estimated APR varies by credit rating, based on users who pre-qualified through NerdWallet:

Source: Average rates are based on aggregate, anonymized offer data from users who pre-qualified through NerdWallet in the last 30 days. Rates are estimates only and not specific to any lender.

Debt-to-income ratio. Lenders also consider your DTI, which is your total monthly debt payments (including mortgage or rent) divided by your monthly income. DTI limits vary widely among lenders; some allow a maximum DTI of 75%, while others cap it around 50%.

Loan type. Most personal loans are unsecured (not backed by collateral) and involve a single applicant. In this case, lenders base your approval and APR solely on your financial profile. Two loan types that are lower-risk for lenders and may result in lower APRs are:

Loan amount. The amount of money you apply for may also affect your APR. Requesting a large loan can mean more risk for the lender, which in turn, may charge a higher APR.  

» MORE: How to get a lower APR

Next: Pre-qualify to see your APR

Now that you understand APR and the impact of origination fees, a next step is to pre-qualify and see APRs you may qualify for. Most lenders allow you to pre-qualify with a soft credit check that doesn't impact your credit score.

Pre-qualified offers usually include your estimated APR, loan amount, repayment term and monthly payment. Remember, comparing APRs is typically the best way to identify the loan with the lowest overall borrowing cost.

You can compare personalized offers from multiple lenders by pre-qualifying through NerdWallet. Submit one free form and see your results within minutes.