Origination Fee Calculator

Origination fee = Loan amount × origination fee percentage. It's typically charged as 0.5%–8% of the loan amount, deducted either upfront from your loan proceeds or rolled into the loan balance, depending on the lender.

Not if the fee is deducted upfront — many personal loans and some mortgages subtract the origination fee from your loan proceeds before disbursement, so you actually receive less cash than the stated loan amount even though you repay the full amount plus interest.

Yes — since you receive less money than you're repaying, an origination fee raises your loan's effective APR above its stated interest rate. The shorter the loan term, the bigger this effect, since the fee is spread over fewer payments.

Sometimes, especially with mortgages, where they're one of several closing costs that can potentially be negotiated or shopped around. Personal loan origination fees are often fixed based on your credit profile and less negotiable.

Enter your stated interest rate and loan term below to see the exact effective APR — it's calculated by finding the rate at which the present value of your payments equals the amount you actually received, not the stated loan amount.