APR calculator

The annual percentage rate (APR) includes fees, so it is a fairer comparison than the quoted interest rate alone. Enter the rate and fees to see the true APR.

By Promissory.ca Editorial Team Reviewed against official Canadian sources Last updated: 2026-09-16

Loan amount ($)

Quoted annual rate (%)

Term (years)

Upfront fees ($)Fees deducted from the amount you receive.

Annual percentage rate

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How this calculator works

Calculate the payment the borrower makes using the quoted rate and the full loan amount.
Reduce the amount advanced by the upfront fees.
Solve for the monthly rate at which the present value of those payments equals the reduced advance.
Multiply the monthly rate by 12 to express it as an annual percentage rate.

Formula: APR = the annualised rate that makes the present value of the payments equal the amount advanced minus fees

Frequently asked questions

Why is APR higher than the quoted rate?

Because fees reduce the amount you actually receive while your payments are based on the full amount. That makes the effective cost higher than the quoted rate.

Is APR the same as the interest rate?

No. The interest rate is the price of borrowing the principal. The APR also folds in certain fees so you can compare offers on a like-for-like basis.

Do all Canadian lenders quote APR?

Disclosure rules require cost-of-credit disclosure on many consumer credit products. The format can vary, so always check the total cost of credit as well.

Sources

Financial Consumer Agency of Canada — Financial Consumer Agency of Canada
Criminal Code, s. 347 — Criminal interest rate — Government of Canada — Justice Laws

Important legal information

Promissory.ca is not a lender, bank, mortgage broker or credit counsellor. We do not make lending decisions and we do not charge you a fee to use this service.

Submitting an application does not guarantee approval. All applications, rates and terms are set and approved solely by the individual lender or licensed professional.

Rates, fees and loan amounts vary by lender, province, loan type and your credit profile. Advertised rates are the lender's lowest offered rate and may not be available to you.

Lenders may perform a credit check with one or more credit bureaus, including Equifax and TransUnion. A hard credit inquiry may affect your credit score.

There is no obligation to accept any offer presented to you. Review every agreement carefully before signing.

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If you are struggling with debt, consider contacting a non-profit credit counselling service or a Licensed Insolvency Trustee before borrowing more.

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