Personal Loan Calculator With Origination Fee: Payment, Cash and APR

This calculator works out a personal loan where an origination fee is taken out of the money you receive. Enter the loan amount, the fee as a percent, the interest rate and the term; you get the monthly payment, the cash that reaches you, the APR once the fee is counted and the total cost.

Formula

Payment M = P × r ÷ (1 − (1 + r)⁻ⁿ) on the full amount at the interest rate. Cash received = P × (1 − fee % ÷ 100). The APR is the yearly rate at which the payments repay just the cash received, found numerically. Total cost = M × n − cash received.

Worked Example

$15,000 at 11% for 36 months with a 5% origination fee.

1. M = 15,000 × 0.0091667 ÷ (1 − 1.0091667⁻³⁶) = $491.08
2. Cash received = 15,000 × 0.95 = $14,250.00
3. Solving 14,250 = 491.08 × (1 − (1 + i ÷ 12)⁻³⁶) ÷ (i ÷ 12) gives an APR of 14.58%
4. Total cost = 491.08 × 36 − 14,250 = $3,428.88

Assumptions

• The payment is rounded to the cent and totals use the rounded payment; a lender’s final payment can differ by a few cents.
• Fixed interest rate for the whole term; payments of equal size at the end of each month.
• Interest compounds monthly at APR ÷ 12.
• No fees, taxes or insurance unless the calculator has a field for them.
• The fee is deducted from the loan, so you repay on the full amount but receive less.

How to read the result

To receive a set amount after the fee, divide what you need by (1 − fee ÷ 100) and use that as the loan amount.

Limits and common mistakes

• Compare personal loans on APR and total cost, not the interest rate alone.
• Late fees and payment insurance are not included.

Frequently Asked Questions

What APR does a 5% fee add to an 11% three-year loan?

The APR comes to about 14.58%.

How much do I receive from $15,000 with a 5% fee?

$14,250.

Is the fee interest?

No, but it is a cost of the loan and is counted in the APR here.

in p | Loan amount | $ | 15000 | 1 | 10000000
in of | Origination fee | % | 5 | 0 | 50
in nr | Interest rate | % | 11 | 0.01 | 100
in n | Term | months | 36 | 1 | 120
out pmt | Monthly payment | $ | round(p * (nr / 1200) / (1 - (1 + nr / 1200) ^ -n), 2) | 2
out cash | Cash you receive | $ | p * (1 - of / 100) | 2
out apr | APR including the fee | % | rate(n, pmt, cash) * 1200 | 2
out tc | Total cost (interest and fee) | $ | pmt * n - cash | 2