How to use this calculator
- Enter or choose loan amount.
- Enter or choose interest rate (per year).
- Enter or choose loan term.
- Enter or choose payments.
- Enter or choose origination fee.
- The payment each period updates as you type. Use Copy result or Share to keep it.
Method
Payment = P × i × (1 + i)^n ÷ ((1 + i)^n − 1), i = rate ÷ payments per year. APR: solve Σ Payment ÷ (1 + a)^k = P − Fees, then APR = a × payments per year
- P
- loan amount
- i
- interest rate per payment period
- n
- number of payments
- a
- cost of credit per period including fees
Worked example
- Monthly rate 8% ÷ 12 = 0.6667% over 60 payments: payment = $2,027.64, total interest $21,658.37.
- Fees: 2% × 100,000 + 500 = $2,500, so you receive $97,500.
- The monthly rate at which 60 payments of $2,027.64 are worth $97,500 is about 0.757%, an APR of about 9.08%.
A $100,000 five-year loan at 8% costs $2,027.64 a month; with $2,500 of fees the true APR is about 9.08%.
What the result means
Compare loan offers on APR and total cost, not the headline rate. Fees matter more on short loans, because they are spread over fewer payments.
Assumptions and limits
- Fixed rate, level payments and fees deducted from the loan proceeds.
- The APR is a nominal annual rate (periodic rate × payments per year), the way US lenders state APR.
- Merchant cash advances and factor-rate products are priced differently and are not covered.
- Prepayment penalties, balloon payments and variable rates are not modelled.
Questions
Why is the APR higher than my interest rate?
Because you pay interest on the full loan but receive less cash after fees. Spreading the fees over the term raises the effective rate.
Do weekly payments save interest?
At the same annual rate, more frequent payments reduce the balance sooner, so total interest is slightly lower, but each payment is due more often.
Please note: This calculator gives estimates for planning. It is not financial advice, and lenders’ actual terms, fees and rounding may differ.