Many personal loans charge an origination fee, often taken out of the money you receive. That means you pay interest on money you never got. Enter a loan offer to see your monthly payment, the true cost, and the real APR once the fee is included.
This calculator gives estimates for learning and planning. It isn’t financial advice or a loan offer. Nothing you enter is saved or sent anywhere; the math runs in your browser.
Interest rate vs. APR
The interest rate is what the lender charges for borrowing. The APR (annual percentage rate) is the interest rate plus fees like origination charges, so it’s the better number for comparing offers, as the Consumer Financial Protection Bureau explains. When you compare loans, compare APR to APR, not an APR to an interest rate.
How the calculator works
- Monthly payment uses the standard amortization formula for a fixed-rate loan.
- Fee taken out of your money: you repay the full loan amount but receive less. Fee added to the balance: you receive the full amount but repay a larger loan.
- Real APR is the annual rate at which your payments add up to exactly the money you received. This is the same idea behind the APR lenders disclose. Your lender’s disclosed APR may differ slightly if other fees are involved.
Related guides
- How Loan Origination Fees Increase Your Borrowing Cost
- Personal Loan vs Credit Card: Which Costs Less
- How to Qualify for a Low-Interest Personal Loan
- How to Improve Your Debt-to-Income Ratio Before Applying for a Loan
- Buy Now, Pay Later vs. Personal Loans for Big Purchases