Mortgage APR Calculator

Calculate a mortgage APR including discount points and lender fees.

Currency

Loan amount

Interest rate

Loan term

Discount points

1 point = 1% of the loan.

Lender fees

Enter your values to see the result.

Results are estimates for planning only. Actual figures depend on your lender or bank, fees, rounding and the exact dates used, so confirm the numbers before you sign anything. Only prepaid finance charges (points and lender fees) belong in APR; title, appraisal and similar third-party costs usually do not.

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How this calculation works

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Formula: Solve the present value of monthly payments equal to the amount received after included fees. Multiply the solved monthly rate by 12 × 100 for nominal annual APR.
Variables: Loan amount
Interest rate
Loan term: 10 years, 15 years, 20 years, 25 years, 30 years
Discount points. 1 point = 1% of the loan.
Lender fees
Units: Interest rate: %
Use the same selected currency for all monetary inputs. Changing the symbol does not convert exchange rates.
Example: A $320,000 30-year mortgage at 6.5% with 1 point ($3,200) and $3,000 in lender fees has an APR of about 6.69%, even though the note rate is 6.5%.
Assumptions: Results are estimates for planning only. Actual figures depend on your lender or bank, fees, rounding and the exact dates used, so confirm the numbers before you sign anything. Only prepaid finance charges (points and lender fees) belong in APR; title, appraisal and similar third-party costs usually do not.
Source: ToolzHive calculation guide and calculator implementation. External reference verification is pending.
Last reviewed: Review date not yet recorded.

Methodology & References

The method depends on the selected model and input options. Review the assumptions and references above before interpreting the result.

Enter the loan amount, interest rate and term.
Add discount points (1 point is 1% of the loan) and lender fees such as origination and underwriting.
Compare the APR, monthly payment and upfront cost across different offers.

Interpretation and limitations

What are discount points? Points are upfront fees you pay to lower your interest rate. Each point costs 1% of the loan amount and typically lowers the rate by around 0.25%, depending on the lender.
Which fees are included in mortgage APR? Prepaid finance charges such as points, origination and underwriting fees. Third-party costs like title insurance, appraisal and recording fees are usually not included.
Are points worth paying? They pay off if you keep the loan long enough. Divide the cost of the points by the monthly savings to find your break-even point in months.

References

External reference verification is pending. The formula and examples describe the current ToolzHive implementation.

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Clear instructions

Find steps, examples and limitations below.

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How to use the Mortgage APR Calculator

Mortgage offers can be hard to compare: one lender quotes a low rate with discount points, another a higher rate with no points. The mortgage APR calculator includes the points and lender fees you pay upfront and shows the loan's true annual percentage rate, so you can see which offer really costs less.

1 Enter the loan amount, interest rate and term.
2 Add discount points (1 point is 1% of the loan) and lender fees such as origination and underwriting.
3 Compare the APR, monthly payment and upfront cost across different offers.

Example and practical tips

A $320,000 30-year mortgage at 6.5% with 1 point ($3,200) and $3,000 in lender fees has an APR of about 6.69%, even though the note rate is 6.5%.

Frequently asked questions

What are discount points?

Points are upfront fees you pay to lower your interest rate. Each point costs 1% of the loan amount and typically lowers the rate by around 0.25%, depending on the lender.

Which fees are included in mortgage APR?

Prepaid finance charges such as points, origination and underwriting fees. Third-party costs like title insurance, appraisal and recording fees are usually not included.

Are points worth paying?

They pay off if you keep the loan long enough. Divide the cost of the points by the monthly savings to find your break-even point in months.

How to Use Mortgage APR Calculator
Calculate the APR of a mortgage including discount points and lender fees, and compare it with the note rate to find the real cost of a home loan offer.