Mortgage Interest Rate Analyzer (EAR vs. APR)

Understand the impact of compounding (EAR) on a nominal rate and compare it to a lender's quoted APR.

** IMPORTANT - PLEASE READ **
  • This tool is for educational purposes ONLY to illustrate interest concepts.
  • The **Effective Annual Rate (EAR)** calculated here shows the effect of compounding on a nominal interest rate only. It does NOT include other loan fees.
  • The **Annual Percentage Rate (APR)** is a broader measure of borrowing cost typically provided by lenders, which includes the interest rate PLUS certain fees (origination, points, some closing costs). This tool takes APR as an input for comparison; it does not calculate it.
  • This tool is **NOT a substitute for official loan disclosures** from lenders and is NOT financial advice.

Calculate Effective Annual Rate (EAR)

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Quoted APR (for Comparison)

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