Personal Loan Calculator
Personal loans hide part of their price in the origination fee. This calculator shows the payment, the total cost, and the effective APR once the fee is counted.
The fee you never hold in your hand
Many personal loans deduct an origination fee — commonly 1–8% — from the proceeds, then charge interest on the full amount. You borrow $15,000, receive $14,250, and repay $15,000 plus interest. The stated rate describes the loan; the effective APR describes your actual bargain, and lenders must disclose it — this calculator reproduces it.
Effective APR = the rate at which the payments are worth exactly what you received (loan − fee)
Example: $15,000 at 11% for 4 years with a 5% origination fee: payment $387.61, but you received $14,250. The effective APR works out near 13.4%, not 11% — the fee is worth more than two points of rate.
Comparing offers with mixed shapes
One lender quotes 10% with a 6% fee; another 12% with none. Stated rates cannot settle it, payments cannot settle it (same term, the payment follows the stated rate) — only total cost and effective APR can. Bring both offers here one at a time, or settle it directly in the loan-comparison calculator.
How this is calculated
The payment amortizes the full loan amount at the stated rate (fees do not change contractual payments). Total cost = all payments + the fee. Effective APR is found by the actuarial method: the monthly rate whose discounted payments equal the net proceeds (amount − fee), annualized × 12 — the same construction as the APR calculator, with the fee entered as a percentage here.
Frequently asked questions
Is the origination fee always deducted from proceeds?
Usually, on the marketplace-style personal loans where it is common — though some lenders add it to the balance instead. Either way you pay it plus interest on it; the APR disclosure captures both treatments.
Do all personal loans have origination fees?
No. Many bank and credit-union personal loans have none, which is why their stated rates can look higher while costing less. The fee comparison is precisely the point of this page.
Does the effective APR include late fees or prepayment penalties?
No — APR includes charges known at signing. Prepayment penalties, where they still exist, are a separate contract term worth reading before the rate table.
Should I take a longer term to cut the payment?
It cuts the payment by extending your debt, at a higher total interest bill. If cash flow forces it, choose the longer term but pay it on the shorter schedule whenever you can — most personal loans allow extra payments.
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