Personal Loan Calculator (Payment, Fees and True APR)
Enter the loan amount, interest rate, term and any origination fee.
Your numbers
Your results
Personal Loan Calculator (Payment, Fees and True APR) by TheCalcTools
How the Personal Loan Calculator (Payment, Fees and True APR) works
The payment is the standard amortising loan formula. When an origination fee is taken out of the loan, you receive less but repay the full amount, so the true cost is higher than the interest rate.
The true APR is the rate at which the payments repay only the money you received. It is found numerically and is the fairest way to compare loans with different fees.
The formula
Worked example
Using the default values shown in the calculator:
| Loan amount | $15000 |
|---|---|
| Interest rate (yearly) | 11.5 % |
| Term (months) | 48 |
| Origination fee (deducted from the loan) | 4 % |
- 15,000 over 48 months at 11.5%: $391.34 a month, $3,784.09 interest.
- A 4% fee leaves you $14,400.00, so the true APR is 13.70%.
Result:
| Monthly payment | $391.34 |
|---|---|
| Total interest | $3,784.09 |
| Fee | $600.00 |
| Money you actually receive | $14,400.00 |
| True APR including the fee | 13.70% |
| Total cost of borrowing | $4,384.09 |
Frequently asked questions
Why is the APR higher than the interest rate?
Because fees reduce the money you get while the payments stay the same. In the US, lenders must disclose the APR under the Truth in Lending Act.
Sources and further reading
- CFPB: What is the difference between a loan interest rate and the APR?
- Wikipedia: Annual percentage rate
Related calculators
More in Loans & Debt · All calculators
This calculator gives estimates for information only. It is not financial advice, and your lender's or provider's figures will govern. Rates, fees and rules vary. See our disclaimer.