Loan Origination Fee Calculator

About this calculator

A loan origination fee is an upfront charge lenders levy for processing, underwriting, and funding a loan, typically expressed as a percentage of the loan amount — often described in "points," where one point equals 1% of the principal — sometimes combined with an additional flat fee for administrative costs. This fee is usually deducted from the loan proceeds at closing or added to the balance, rather than billed separately, so the amount you actually receive in hand is less than the face value of the loan.

Origination fees are a key reason two loans with the same interest rate can carry a different true cost — a lender offering a lower rate but a higher origination fee may end up more expensive overall, especially on short-term loans where the fee is not amortized over enough time to be diluted. This calculator takes your loan amount, origination fee percentage, and any fixed fee to compute the total fee charged and the net proceeds you actually walk away with.