Financial glossary
Origination Fee
In plain English
An upfront lender charge for making a loan, usually stated as a percentage and deducted from proceeds or added to the amount borrowed.
Origination fee
An origination fee is a lender charge for processing and making a loan. It is commonly quoted as a percentage of the loan amount. A 5% fee on a $10,000 loan is $500 if calculated directly.
How the fee is collected matters. If it is deducted from proceeds, borrowing $10,000 may put only $9,500 in your account. To receive enough cash to repay $10,000 of debt, the stated loan may need to be larger. That larger principal also accrues interest.
The debt consolidation calculator grosses up the new loan so net proceeds cover the selected debt, then counts both the financed fee and interest. Compare APR and cash received—not just the advertised interest rate.
Related calculators
- Mortgage APR CalculatorEstimate mortgage APR from the interest rate, term, discount points, and prepaid finance charges. Compare APR, payment, interest, and TIP.
- Debt Consolidation CalculatorCompare current debt with a consolidation loan, including APR, loan term, financed origination fee, monthly payment, and complete finance cost.
- Personal Loan CalculatorCalculate your personal loan payment, total interest, and the cash you actually receive after origination fees. Compare terms instantly.