How to use this calculator
- Enter the loan amount, rate, term and origination fee from your loan offer.
- Switch to “Compare two loans” to put two quotes side by side.
- Tick “I may pay the loan off early” to see what an early payoff saves.
APR here is the monthly rate at which your payments repay the money you actually receive, × 12 — the same idea as the APR in a Truth in Lending disclosure.
Frequently asked questions
What is an origination fee?
A one-time charge for making the loan, usually taken out of the money you receive. On $15,000 with a 4% fee, you get $14,400 but repay the full amount plus interest.
Why is the APR higher than the interest rate?
Because the APR counts the fee as well as the interest. A 12% loan over 36 months with a 4% origination fee has an APR of about 14.86%. Compare loan offers by APR, not by rate or monthly payment alone.
Is the offer with the lower monthly payment cheaper?
Not necessarily. Here, offer A costs $3,536 in interest and fees and offer B $4,509 — a longer term lowers the payment but usually raises the total cost.
Can I pay off a personal loan early?
Usually yes. Some lenders charge a prepayment penalty; tick “I may pay the loan off early” to see what paying it off saves after any penalty.