Personal Loan Calculator
Estimate personal loan payments including origination fees and effective APR.
Inputs
$
%
%
Deducted from loan proceeds
Results
Monthly Payment
$470.05
Effective APR
10.08%
True cost including fees
Total Interest
$1,921.64
Origination Fee
$450.00
Total Cost
$2,371.64
Interest + Fee
Formula
M = P × [r(1+r)^n] / [(1+r)^n - 1]
Same as a standard loan formula. The effective APR is calculated by finding the rate that makes the present value of payments equal to the net proceeds (loan amount minus origination fee).
Worked Example
Loan: $15,000 | Rate: 8% | Term: 36 months | Fee: 3%
Monthly payment: $470.05
Origination fee: $450
Net proceeds: $14,550
Effective APR: ~9.9% (higher than stated rate due to fee)
When to Use This Calculator
Use when comparing personal loan offers from different lenders. The effective APR accounts for origination fees, giving a true cost comparison.
Important Assumptions
- Fixed rate.
- Origination fee deducted from proceeds upfront.
- No prepayment penalties.
Common Mistakes to Avoid
- Comparing loans by interest rate alone — always check the effective APR including fees.
- Not accounting for the origination fee reducing your actual loan proceeds.
Frequently Asked Questions
What is an origination fee?
A one-time fee charged by the lender, typically 1-8% of the loan amount, deducted from your loan proceeds before disbursement.
Why is effective APR higher than the stated rate?
Because you receive less money (after the fee is deducted) but make payments on the full loan amount. This makes the true cost of borrowing higher.
Related Calculators
Methodology: This calculator uses standard financial formulas documented above. All calculation engines are unit-tested for accuracy.View full methodology
Disclaimer: This calculator provides estimates for educational purposes only. Results do not constitute financial advice.Full disclaimer