calcanswers.com All calculators

Personal Loan Calculator with Origination Fee and APR

Finance

Enter the loan amount, the interest rate, the term and any origination fee. You get the monthly payment, the total interest and fee, the cash you actually receive and the APR with the fee included.

Which amount do you know?

The amount you borrow and repay. The origination fee comes out of it.

The rate on your loan agreement, before the fee. It is not the APR, which includes the fee.

In months: 60 months is 5 years.

As a percent of the loan amount; enter 0 if there is none. If your offer lists dollars, divide the fee by the loan amount.

Use a period for decimals, like 12.5. Commas for thousands are fine. The result updates as you type.Decimals with a period, like 12.5

Your entries stay on your device. The math runs right in your browser.

Result: Monthly payment

$444.89

Borrowing $20,000 at 12% over 60 months costs $444.89 a month. After the 5% fee you receive $19,000.00, you pay $6,693.34 in interest plus $1,000.00 in fees, and the APR is 14.28%.

  • APR with the fee: 14.28%
  • Cash you receive: $19,000.00
  • Total interest: $6,693.34
  • Origination fee: $1,000.00
  • Interest plus fee: $7,693.34
  • Total of all payments: $26,693.34
  • Loan amount: $20,000.00

Personal loan payment and cost for common loan amounts

Payment by loan amount
Loan amountMonthly paymentCash you receiveInterest plus fee
$5,000$111.22$4,750$1,923
$10,000$222.44$9,500$3,847
$15,000$333.67$14,250$5,770
$20,000$444.89$19,000$7,693
$25,000$556.11$23,750$9,617
$30,000$667.33$28,500$11,540
$35,000$778.56$33,250$13,463
$40,000$889.78$38,000$15,387
$50,000$1,112.22$47,500$19,233
$100,000$2,224.44$95,000$38,467

Step by step

20,000 - 1,000 = 19,000

  1. Origination fee: 5% of $20,000 is $1,000.00. You owe $20,000 and receive $19,000.00.
  2. Monthly payment from the loan formula, with r = 12% / 12 and 60 payments: $444.89. At an interest rate of 0% the payment is simply the loan divided by 60.
  3. Over 60 months you repay $26,693.34. Interest is $6,693.34, and interest plus the fee comes to $7,693.34.
  4. APR: the monthly rate at which $19,000.00 received now is worth 60 payments of $444.89, times 12, is 14.28%. With no fee it equals the interest rate of 12%.

Formula

M = P × r / (1 - (1 + r)-n)
fee = P × f, cash received = P - fee
cash received = M × (1 - (1 + i)-n) / i
APR = 12 × i
M
monthly payment
P
loan amount you owe and repay
r
monthly interest rate: the interest rate divided by 12, as a decimal
n
number of monthly payments
f
origination fee as a decimal, 0.05 for 5%
i
monthly rate at which the n payments are worth the cash you received

How it works

A personal loan is an installment loan. You receive the whole amount at the start and repay it in equal monthly payments. Each payment covers that month’s interest on what you still owe plus part of the principal, and the payment that clears the loan exactly on the last date is M = P × r / (1 - (1 + r)^-n), where r is the interest rate divided by 12. A $20,000 loan at 12% over 60 months costs $444.89 a month and $6,693.34 in interest.

Many lenders also charge an origination fee. Regulation Z counts it as a finance charge, whether the lender withholds it from the loan proceeds or you pay it separately at closing. On a $20,000 loan with a 5% fee you owe $20,000 but receive $19,000, and you pay interest on the full amount. The interest rate does not show that cost; the APR does. The APR is 12 times the monthly rate at which your payments exactly repay the cash you received, so the same loan has an APR of 14.28% against a 12% interest rate. Shorter loans feel the fee more: the same 5% fee gives an APR of 17.23% over 24 months.

Choose “Loan amount” when you know what you will owe, or “Cash I need” when you need a given sum in hand after the fee. The calculator then finds the larger loan that leaves that sum, so receiving $20,000 after a 5% fee takes a loan of $21,052.63. The table lists the payment for common loan amounts at your rate, term and fee. The results assume a fixed rate, level monthly payments, a first payment one month after the loan and no other fees, insurance or taxes, so your lender’s loan disclosure is the figure that counts. For a loan without fees and a year-by-year schedule, use the loan calculator.

The formula

Total interest is the payments minus the loan amount, M × n - P, and the total cost adds the fee. At an interest rate of 0% the payment is P / n. If you enter the cash you need instead, the loan is that cash divided by (1 - f), so that the fee of f × P still leaves the cash in hand.

The APR follows the actuarial method of Regulation Z (12 CFR 1026.22 and Appendix J): the cash you received grows by the finance charge earned each month and shrinks by the payment, and the APR is 12 times the monthly rate i that leaves nothing owed after the last payment. There is no simple formula for i, so the calculator finds it by repeated halving. With no fee, i equals r and the APR equals the interest rate. The APR does not depend on the loan amount, only on the rate, the term and the fee.

A lender’s disclosed APR can differ slightly, because Regulation Z accepts an APR within one eighth of a percentage point of the exact figure, and a real offer can carry other charges, such as documentation fees or credit insurance, which this calculator does not model. The table repeats the calculation for loan amounts of $5,000, $10,000, $15,000, $20,000, $25,000, $30,000, $35,000, $40,000, $50,000 and $100,000 at your rate, term and fee percentage: each row shows the payment, the cash left after the fee and the interest plus fee for that loan amount.

Example

How much do I borrow to receive $10,000 after a 6% fee?

  1. The fee comes out of the loan, so the loan must be bigger than the cash you want: $10,000 / (1 - 0.06) = $10,638.30, with a fee of $638.30.
  2. At 10.5% over 36 months, the payment on $10,638.30 is $345.77. You repay $12,447.74, of which $1,809.45 is interest.
  3. The APR counts the fee: 14.82%, against the interest rate of 10.5%.

To receive $10,000 after the 6% fee you borrow $10,638.30. At 10.5% over 36 months that costs $345.77 a month, $1,809.45 in interest and $638.30 in fees, and the APR is 14.82%.

Load this example into the calculator

Frequently asked questions

How much would a $30,000 personal loan cost per month?

It depends on the rate and the term. Without a fee, $30,000 over 60 months costs $637.41 a month at 10%, $667.33 at 12% and $713.70 at 15%. At 12%, 36 months costs $996.43 a month and 84 months costs $529.58. A fee taken out of the loan does not change the payment; it only reduces the cash you receive. Enter your own rate and term above.

What’s the average payment on a $10,000 personal loan?

There is no single average, because the payment depends on the rate and term you are offered. Without a fee, $10,000 at 12% costs $332.14 a month over 36 months and $222.44 over 60 months; at 9% it is $318.00 and $207.58. The longer term lowers the payment but raises the interest: $3,346.67 against $1,957.15 at 12%.

How much would a $20,000 loan cost per month?

At 12% over 60 months a $20,000 loan costs $444.89 a month and $6,693.34 in interest. Over 36 months the payment is $664.29 and the interest $3,914.30; over 84 months it is $353.05 and $9,656.59. With a 5% origination fee the payment stays the same, but you receive $19,000 and the APR is 14.28%.

How much would a $100,000 personal loan cost per month?

Over 120 months the payment is $1,321.51 at 10% and $1,434.71 at 12%, which means $58,580.88 and $72,165.14 of interest. Over 84 months at 10% it is $1,660.12. At this size even a small fee adds up: 3% of $100,000 is $3,000. The table above shows the payment and the interest plus fee for $100,000 at your own rate, term and fee.

What is a personal loan?

The CFPB describes a personal installment loan as a closed-end loan: the lender gives you the whole amount at the start and you repay it in set payments over a fixed period. It can pay for a large purchase, cover an unexpected expense or consolidate debt. The rate can be fixed or adjustable, and lenders weigh your credit, income, debts and the amount and length of the loan. This calculator assumes a fixed rate.

What is an origination fee?

It is a fee for making the loan, and the CFPB lists it first among the common fees on personal installment loans, next to documentation fees, optional credit insurance and late fees. A lender can withhold it from the proceeds or ask you to pay it separately, and Regulation Z counts it as a finance charge either way, so it raises the APR. Your loan disclosure shows the exact amount.

What is the difference between the interest rate and the APR?

The interest rate is the cost of borrowing the money. The CFPB explains that the APR is the interest rate plus additional fees, including origination charges. The Truth in Lending Act requires lenders to disclose it, so you can compare APRs with APRs. Here the gap is the fee: 12% becomes an APR of 14.28% with a 5% fee on a 60-month loan.

How is the APR calculated?

Regulation Z defines the APR as a measure of the cost of credit, expressed as a yearly rate, that relates the amount and timing of the value you receive to the amount and timing of your payments. For equal monthly payments it is 12 times the monthly rate at which the cash you received equals the present value of the payments (the actuarial method in Appendix J). This calculator solves that equation with the cash left after the fee.

Is the fee deducted from the loan or paid upfront?

Either can happen, and the cost is the same. Regulation Z calls a finance charge that is paid separately at closing or withheld from the proceeds a prepaid finance charge, and both reduce the amount financed. If it is deducted you receive less than you borrow; if you pay it in cash you receive the full amount and pay the fee yourself. Your cash position and the APR come out the same, so the calculator treats both alike.

How much should I borrow to receive a certain amount after the fee?

Divide the cash you need by one minus the fee. To receive $20,000 after a 5% fee, borrow $20,000 / 0.95 = $21,052.63; the fee is $1,052.63. At 12% over 60 months the payment is then $468.30, against $444.89 on a $20,000 loan, and the APR is still 14.28%. Choose “Cash I need” above to do this with your numbers.

Does a longer term lower the cost of a personal loan?

It lowers the monthly payment but raises the total interest. A $20,000 loan at 12% costs $664.29 a month and $3,914.30 in interest over 36 months, against $353.05 and $9,656.59 over 84 months. A fee weighs less on a longer loan: a 5% fee gives an APR of 15.61% over 36 months and 13.71% over 84 months.

What does this personal loan calculator leave out?

It assumes a fixed rate, equal monthly payments, a first payment one month after the loan and an origination fee as the only extra charge. Documentation fees, credit insurance and late fees are not modeled, early payoff is not part of the calculation, and taxes are ignored. Your lender’s loan disclosure shows the figures that count.

Last updated: Responsible editor: Jared Alan
Checked against 12 test cases · How we test
Sources: