Formula
The fee is financed, so the amount borrowed is higher than the cash you receive:
Amount borrowed = cash needed / (1 − fee rate)
The monthly payment is then the standard fixed-rate payment on that borrowed amount.
Assumptions
- The fee is a single percent of the amount borrowed and is financed, not paid in cash at signing.
- The interest rate stays fixed for the full term.
- No late fees, insurance, or prepayment penalty is included.
Worked example
Needing $10,000.00 with a 5% fee means borrowing $10,526.32. Over 4 years at 9.5%, the payment is $264.45 and the fee adds $526.32.
Input definitions
- Cash you need
- The amount deposited to you, before the financed fee.
- Origination fee
- A percent added to the loan so the lender still advances the cash you need.
Limitations
This is an estimate, not a loan offer. Lenders may calculate the fee on the requested amount instead of the financed amount, and the APR on a disclosure can differ from the interest rate entered here.
Questions
How is this different from the loan calculator?
The loan calculator starts from the amount borrowed. This one starts from the cash you want to receive and adds a financed origination fee before calculating the payment.
Does the currency selector change the fee?
No. It changes the symbol and number format only.