How It Works
Many personal loans deduct an origination fee from the loan amount before disbursing it — so if you're approved for $10,000 with a 3% fee, you receive $9,700, but you still repay the full $10,000 plus interest.
This calculator applies the standard amortization formula to the full loan amount to find your monthly payment, and separately shows the fee's effect on what you actually receive.
Formula
- M — Monthly payment
- P — Loan amount (what you repay, before the fee is subtracted)
- i — Monthly interest rate (annual rate ÷ 12)
- n — Loan term in months
Example
Example inputs: Loan amount $10,000, 3% origination fee, 11.5% APR, 36-month term.
Result: Amount received: $9,700.00. Monthly payment: $329.76. Total interest paid: $1,871.36.
Frequently Asked Questions
Why is my payment based on $10,000 if I only received $9,700?
The origination fee is taken out of your disbursement, not off your obligation — you still owe and repay the full amount you were approved for, so the fee effectively raises your real cost of borrowing beyond the stated interest rate.
Do all personal loans charge an origination fee?
No — it varies by lender. Enter 0 if your loan doesn't have one. Comparing loans by APR (which factors in fees) rather than just the interest rate gives a more apples-to-apples comparison.
Is a personal loan different from the generic Loan Calculator?
The math is the same amortization formula — this version adds the origination fee, which is common on personal loans specifically and worth seeing separately from the payment itself.
This calculator provides estimates for informational purposes only and should not be considered financial, tax, or legal advice.