Calculator
Example data table
Sample scenarios for quick reference and testing.
| Scenario | Loan | Origination | Points | Prepaids | Credits | Total upfront fees |
|---|---|---|---|---|---|---|
| Personal loan, moderate fees | $10,000 | $150 | $0 | $25 | $0 | $365 |
| Auto loan, lender credits applied | $25,000 | $250 | $0 | $55 | $150 | $620 |
| Mortgage-style fees with points | $250,000 | $2,500 | $1,250 | $1,420 | $800 | $6,040 |
Formula used
- Origination Fee = Loan × (Orig% / 100) or fixed amount.
- Discount Points = Loan × (Points% / 100).
- Per‑diem Interest = Loan × (Rate% / 100) ÷ 365.
- Prepaid Interest = Per‑diem × Days.
- Percent-based charges (taxes, upfront insurance) = Loan × (Percent / 100).
- Total Upfront Fees = sum of all fee items − lender credits.
- Cash Needed = total upfront fees − financed fees (if enabled).
- Monthly Payment uses the standard amortization formula with term months.
- Estimated APR solves for a rate where the payment stream matches the estimated amount financed.
How to use this calculator
- Enter the loan amount, rate, and term months.
- Fill lender fees (origination, underwriting, processing, and points).
- Add third‑party, government, insurance, and prepaid items as needed.
- Enter lender credits as a positive value to reduce totals.
- If allowed, enable financing and select which fees to roll in.
- Press Calculate to see totals above the form.
- Use the export buttons to download CSV or PDF summaries.
Cost Structure Behind Upfront Fees
Upfront loan costs usually mix lender, third‑party, government, insurance, and prepaid items. In many offers, lender fees run about 0.5%–2.0% of the loan, while third‑party services can add 300–2,000 in combined charges. Prepaids are timing items, such as 0–30 days of interest plus escrow deposits. This calculator totals each category so you can see where the money goes before closing and spot unusually high line items.
Points and Rate Trade‑offs
Discount points are an optional prepaid interest charge. One point equals 1% of the loan amount, so a 250,000 loan with 0.75 points adds 1,875 to upfront costs. If points lower the rate by 0.125%–0.375%, estimate the monthly savings and divide the fee by that savings to approximate breakeven months. Keep term constant so comparisons stay fair across quotes.
Lender Credits and Net Cash Impact
Lender credits reduce cash required at signing, often in exchange for a higher rate. For example, a 1,000 credit cuts total upfront fees by the same amount, improving liquidity for borrowers who prefer lower cash to close. If the higher rate increases payment by 12 per month, the credit pays back in about 84 months. Enter credits as a positive value; the breakdown shows them as a subtraction line.
Rolling Fees Into Balance and Payment Effects
Some products allow selected lender charges to be financed instead of paid upfront. If you roll 2,500 of fees into the balance, the new principal becomes 252,500, and monthly payment rises accordingly. At 8.5% over 60 months, that roll‑in increases payment by roughly 51 per month. The calculator shows base payment versus financed‑fee payment to highlight long‑term cost and the trade‑off between cash and payment.
Using APR Estimates for Offer Comparisons
APR reflects both rate and certain upfront finance charges over the loan term. This tool estimates APR by solving for the rate that matches the payment stream against an estimated “amount financed.” It includes common lender charges like origination, points, and underwriting, but excludes third‑party items that vary by region. Use APR to compare offers with different fee structures, and pair it with cash‑needed results for a complete view under your chosen assumptions.
FAQs
What does the calculator include as upfront fees?
It sums lender charges, third‑party services, government or registration costs, upfront insurance, and prepaids such as interest days and escrow deposits. Lender credits are subtracted to show a net total.
How are discount points calculated?
Points equal a percentage of the loan amount. For example, 0.75 points on 250,000 equals 250,000 × 0.0075 = 1,875.
Can I roll fees into the loan balance?
Yes, enable financing and select eligible lender items. The tool adds selected fees to the balance, recalculates payment, and reduces cash needed. Eligibility depends on product rules.
How do lender credits change the results?
Credits reduce the upfront total dollar‑for‑dollar. They may come with a higher rate, so compare the cash savings to the payment increase over your expected time in the loan.
Why is prepaid interest based on days?
Many loans collect interest from funding to the first payment date. The calculator uses per‑diem interest (loan × rate ÷ 365) times your entered day count.
Is the estimated APR legally exact?
No. It is an approximation using the payment stream and selected fee assumptions. Official disclosures may include or exclude items differently and apply specific regulations.