Calculator
Business Loan APR Comparison
Compare two loan offers side by side — including origination fees — to find the true lower-cost option.
% of loan amount, deducted at funding
% of loan amount, deducted at funding
Loan A costs $514 less in total over the life of the loan. The effective APR difference is 8.38%.
Free, no obligation. One application, multiple lender offers.
Why APR matters more than interest rate
A lender can advertise a lower interest rate but charge a higher origination fee — making their offer more expensive overall. The effective APR accounts for both: it's the annualized rate that would produce the same total cost if there were no fee. This is the apples-to-apples comparison.
Example: A 7% loan with a 3% origination fee on a 36-month term has an effective APR of ~9.1% — higher than a straightforward 8.5% loan with no fee. Use this calculator whenever a lender quote includes fees buried in the fine print.
Note: This calculator uses standard amortization. For MCA or revenue-based financing with a factor rate (e.g., 1.3x), the annualized cost is typically far higher — check our MCA guide for how to evaluate those offers.