In some areas, the annual percentage rate (APR) is the simplified counterpart to the effective interest rate that the borrower will pay on a loan. When not using the term "effective APR", the use of "APR" is an early term for nominal APR. In many countries and jurisdictions, lenders (such as banks) are required to disclose the "cost" of borrowing in some standardized way as a form of consumer protection. APR is intended to make it easier to compare lenders and loan options. The APR is likely to differ from the "note rate" or "headline rate" advertised by the lender, due to the addition of other fees that may need to be included in the APR. APRs can be found by asking the lender or by reading the appropriate section in the contract.

Use San Jose APR calculator tool to calculate the annual percentage rate (APR) of your loan as defined by the Federal Truth in Lending Act. Make sure that you get an accurate good faith estimate (GFE) of closing charges from the lender. Note that this is an estimation tool and does not allow for taxes and insurance.