Loan origination fee APR calculator.

How it is calculated

The fee is amount × fee % + flat fee. Deducted: you borrow the full amount but receive amount − fee. Financed: the balance becomes amount + fee and you receive the full amount. Paid in cash: the balance is the amount and you hand over the fee separately, so the economics equal the deducted case. The APR is the monthly rate at which the payments are worth exactly the net proceeds, multiplied by 12 (the actuarial method). The early-repayment table repeats the calculation assuming you pay the remaining balance with the payment in the month shown.

Worked example

$100,000.00 at 8% for 36 months with a 2% fee ($2,000.00) deducted from the proceeds: you receive $98,000.00, pay $3,133.64 a month and $14,810.92 in interest plus fee, and the APR is 9.38%, 1.38 points above the stated 8.00%. If you repay after 12 months the APR with the fee rises to 10.45%; after 6 months it is 12.42%. Financing the same fee instead gives a payment of $3,196.31 and an APR of 9.35%.

Sources and limits

The calculation follows the actuarial method described in Appendix J to Regulation Z, 12 CFR part 1026, in which the unpaid balance grows by the finance charge each unit-period and falls by each payment (text checked 2026-10-16). Regulation Z applies to consumer credit; credit extended primarily for a business purpose is outside it (12 CFR 1026.3(a)), and Canadian rules differ, so a lender's own disclosed figure for a business loan may differ. This page treats the whole fee as a cost of the loan, which is the stricter view; which fees a lender counts is its call. It does not model a prepayment penalty.

FAQ

How does an origination fee affect APR?

It is paid up front, so you get less money while the payments stay the same. The shortfall raises the rate that makes the payments equal the money you receive.

Is it better to finance the fee or pay it?

Financing the fee adds it to the balance and you pay interest on it, so the payment is higher. Deducting it or paying cash has the same APR here. Compare the APR and the cash you receive.

Why does the APR rise if I repay early?

The fee is fixed at the start, so a shorter life for the loan spreads it over fewer months and the effective rate rises.

Is the origination fee the same as points?

Both are up-front fees that raise the APR. Lenders use the labels differently, so read the fee list in your offer and enter the total.