APR Calculator – Estimate Loan Cost Including Fees

Use this calculator to estimate the annualised cost of a fixed-rate instalment loan when mandatory upfront fees are included. It also shows the monthly payment and total cash paid. This is a planning estimate, not a lender’s official or legally prescribed APR disclosure.

Loan cost estimator

Loan amount received Enter the amount you borrow Nominal annual interest rate (%) The fixed rate before fees Mandatory fees paid upfront Enter 0 if there are none Loan term (months) For example, 36 months

Assumption: the fee is paid separately at the start, the interest rate stays fixed, and payments are equal and monthly.

How this estimate is calculated

First, the calculator works out the equal monthly payment for the loan amount, fixed nominal rate, and term. It then treats the fee as a cost paid at the start, so the borrower’s net initial benefit is the loan amount minus that fee. A monthly rate is found by comparing that net amount with all scheduled payments, and the monthly rate is compounded over 12 months to give an estimated annualised cost.

Including the timing of payments matters. A £200 fee on a short loan generally has a larger annualised effect than the same fee on a much longer loan. That is why a useful fee-inclusive estimate needs both the fee and the loan term.

APR, interest rate, and total cost

Nominal interest rate: the stated yearly rate used to calculate interest, before the fee entered here.
Estimated annualised borrowing cost: this calculator’s fee-inclusive annual rate based on its stated assumptions.
Monthly payment: the scheduled equal payment based on the loan amount and nominal rate.
Total cash paid: all monthly payments plus the upfront fee.

The cheapest-looking monthly payment is not always the lowest-cost option because a longer term can mean paying interest for more time. Compare the annualised cost, total cash paid, term, and any conditions—not just one number.

Important limitations

This simplified calculator assumes a fixed rate, equal monthly payments, no payment holidays, and mandatory fees paid separately at the beginning. It does not model changing rates, irregular payment dates, optional products, late charges, early-settlement adjustments, taxes, or fees added to the loan balance.

Official APR calculations depend on the law, prescribed assumptions, and exact cash-flow dates that apply to a particular agreement and country. A lender’s official disclosure may therefore differ from this estimate. Always use the agreement’s official APR and total amount payable when making a borrowing decision.

Understanding representative APR in the UK

In the UK, an advertised representative APR is not a promise that every accepted applicant will receive that rate. The Financial Conduct Authority’s consumer-credit rules require the representative APR to be the rate expected to apply to at least 51% of the business resulting from the promotion. MoneyHelper similarly explains that only 51% of approved applicants need to receive the advertised representative APR or a better rate.

Your offered rate can depend on the lender’s assessment, the product, the amount, and the term. Check the personalised offer and pre-contract information before agreeing. Avoid borrowing more than you can afford to repay and seek free debt guidance if repayments are becoming difficult.

Sources and review information

Last reviewed: 17 August 2026. This tool provides a general estimate, not financial, legal, or credit advice. See our editorial policy for how calculator content is checked.