Personal Loan Calculator — net proceeds & the true APR after the fee

How it works

Three steps. Proceeds: N = A(1 − f), the amount minus the origination fee — lenders deduct it up front, so a $15,000 loan with a 5% fee delivers $14,250. Payment: the full amount amortizes at the quoted rate, M = A-based P·r(1+r)ⁿ ⁄ ((1+r)ⁿ − 1) — the fee does not shrink what you repay. True APR: the rate at which that payment amortizes the smaller net proceeds, found by the same bisection the APR calculator uses. The fee percentage is an assumption you set — lender fees vary widely — and the sweep shows the same loan at 0%, 2.5%, 5%, and 10% fees, with the cash received falling and the true APR climbing as the fee grows; the direction is CFPB's own: an APR reflects the rate plus the charges paid to get the loan, and is usually higher than the interest rate.

Worked example

At zero fee the numbers are a published pair: a $15,000 loan at 9% over 5 years pays $311.38 a month (LibreTexts), receives the full $15,000, and its true APR is exactly the quoted 9%. Add this page's default 5% fee to a $15,000 loan at 12% over 3 years and the same borrowing now delivers $14,250 while repaying the full amount: this calculator computes about $498 a month and a true APR near 15.6% — its own figures for those inputs, showing how a one-time fee becomes rate when the money you got is what you measure against.

Frequently asked questions

What is an origination fee and who charges it?

A one-time charge for making the loan, quoted as a percentage of the amount and deducted from the proceeds before the money reaches you. Personal-loan fees vary widely by lender and credit profile — which is why this page treats the percentage as an assumption you set from your actual offer.

Why is the true APR higher than the quoted rate?

Because you repay interest on money you never received. The payment is computed on the full amount, but the fee kept part of it — so measured against the cash in hand, the effective rate is higher. That is precisely what an APR exists to express: the rate plus the charges paid to get the loan, on one scale.

How much cash will I actually receive?

The amount times one minus the fee percentage: $15,000 at a 5% fee delivers $14,250. If you need a specific amount in hand, divide the target by one minus the fee — needing a full $15,000 at a 5% fee means borrowing about $15,789 — and enter that as the amount to see the payment it implies.

Does the fee change my monthly payment?

Not directly: the payment amortizes the full amount at the quoted rate whether or not a fee was charged. The fee's cost appears in the gap between what you repay and what you received — which the true-APR output converts into a rate so offers with different fees compare honestly.

How do I compare two offers with different rates and fees?

Compare true APRs on the same term: each offer's payment against its net proceeds puts the rate and the fee on one scale. A lower quoted rate with a heavy fee can cost more than a higher rate with none — the fee sweep shows how fast the crossover happens on your numbers.

How is this different from the loan calculator?

The loan calculator compares rate-and-term scenarios on money you receive in full. This page models the personal-loan reality of a fee deducted from proceeds — the cash-received and true-APR outputs are the point, and the amortization underneath is the same.

How accurate is this, and what does it exclude?

Exact for a fixed rate, a full-term hold, and a fee deducted from proceeds. It excludes fees added ON TOP of the loan (enter the grossed-up amount instead), prepayment effects — paying off early makes a deducted fee cost even more as a rate — late fees, and insurance add-ons. Confirm the fee structure and figures against your loan agreement.