This personal loan calculator shows your monthly payment and the true cost of the loan, including any origination fee. It also works out the APR with the fee included, which is the fairest way to compare loan offers.
How origination fees change the cost
Many personal lenders charge an origination fee, often a percentage of the loan. It is usually taken out of the money you receive, so you repay the full loan amount but get less cash. That raises the effective rate above the advertised interest rate.
Worked example
A $15,000 loan at 11% for 36 months costs about $491.08 a month and $2,679 in interest. With a 5% fee taken from the proceeds, you receive $14,250, so the APR including the fee is about 14.58%.
Frequently asked questions
How do I compare two personal loan offers?
Compare the APR including fees and the total cost of borrowing, not just the monthly payment. A longer term lowers the payment but usually raises the total cost.
Should I borrow more to cover the fee?
If you need a set amount of cash, choose “Added to the loan balance” to see what borrowing a little more would cost.