## About This Tool

The online APR Calculator is used to calculate the annual percentage rate (APR).

## APR Definition

The annual percentage rate (APR) describes the interest rate for a whole year, rather than just a monthly rate, as applied on a loan, mortgage loan, car loan, credit card, etc. APR is the equivalent interest rate considering all additional costs charged on a certain loan amount. It is a function of the loan amount, interest rate, total additional cost, and the terms. If there is no added costs to a given loan, the APR would equal to the interest rate.