How this calculation works
This calculator estimates the annual percentage rate (APR) using standard internal rate of return principles for installment loans with upfront origination fees. When an origination fee is charged, it acts as a prepaid finance charge that reduces net cash received, raising the effective borrowing cost above the stated note rate.
Statutory precision and tolerances: Under the federal Truth in Lending Act (Regulation Z, 12 C.F.R. ยง 1026.22), official APR disclosures by lenders follow specific actuarial formulas and permit a statutory tolerance of 1/8 of 1 percentage point (0.125%) for regular installment transactions. This calculator provides an educational estimate of fee impact based on regular monthly payments; it is not an official disclosure, lender quote, or compliance determination.
Deducted vs Financed Fees: When an origination fee is deducted from loan proceeds (common for online personal loans), you receive less cash than the nominal loan amount. When a fee is financed into the balance, you receive the full requested amount but pay additional interest on the fee over the term.
Disclaimer: A planning estimate based on your inputs and the assumptions shown. Actual costs and eligibility may differ. Not an offer of credit, pre-approval, loan commitment, or financial advice.