Personal loans are a flexible way to borrow a fixed amount, but their advertised rate rarely tells the whole story. This calculator shows the monthly payment and — crucially — the true cost once the origination fee is included.
How the fee changes the maths
A personal loan's origination fee is typically deducted from the money you receive. Borrow $15,000 with a 3% fee and $450 is taken out — you get $14,550 but repay based on the full $15,000. That gap is what makes the effective APR higher than the stated rate.
Comparing loans properly
The monthly payment and interest rate can look attractive while a big fee lurks behind them. The honest comparison is the total cost of credit: all the interest you'll pay plus every fee. Line loans up on that number.
Getting a better rate
Your credit score is the main driver of both the interest rate and the fee. Checking your rate with several lenders (via soft credit checks) lets you shop without harming your score, and some lenders waive origination fees entirely.
Frequently asked questions
It's an upfront charge for processing the loan, typically 1–8% of the amount. Lenders usually deduct it from your disbursement, so you receive less than the loan amount but repay the full figure.
Because you get less money but repay the whole loan, the fee raises the effective APR above the quoted interest rate. Always compare loans by total cost of credit (interest + fees).
Most are unsecured and flexible — debt consolidation, home improvements, medical bills or large purchases. Rates depend heavily on your credit profile.
Usually yes, with no penalty, which saves interest. Confirm there's no prepayment fee before you borrow.