Key takeaways
What to know before you compare
- Use the note interest rate—not the APR—to estimate an amortized monthly payment.
- A deducted origination fee reduces cash received but does not usually reduce the balance being repaid.
- Compare scheduled payments, net proceeds, and estimated borrowing cost as separate numbers.
- Your lender’s final disclosure and contract control; calculator results are estimates.
Interactive estimate
Calculate the cash received and scheduled cost
Assumes a fixed rate, equal monthly payments, and an origination fee deducted from the stated loan amount.
Educational estimate only. It excludes late charges, optional products, irregular payment dates, and other contract-specific items. The lender’s disclosures and agreement control.
What this personal loan cost calculator shows
The calculator starts with the stated loan amount, interest rate, term, and a fee assumed to be deducted from the proceeds. It estimates the level monthly payment, scheduled interest, cash received, and the difference between scheduled payments and cash received.
That last figure is useful because two loans with the same stated amount can deliver different deposits. A $20,000 loan with a 5% deducted fee provides $19,000 before any other deductions, while payments are still calculated on the $20,000 balance.
How the estimate is calculated
For a fixed-rate installment loan, each payment includes interest on the outstanding balance and some principal. The calculation assumes payments are made on time every month through the stated term. Scheduled interest equals all estimated payments minus the original principal.
When a fee is deducted, estimated borrowing cost equals scheduled payments minus net proceeds. This is a practical comparison figure, not a substitute for the lender’s disclosed APR, finance charge, amount financed, or total of payments.
How to use the results before accepting an offer
First, confirm the net proceeds cover the expense you are financing. Next, test the payment against a normal month and a less comfortable month. Finally, compare the result with another offer using the same amount and a similar term. A lower payment may simply reflect a longer payoff period.
Ask the lender whether the rate is fixed, how the fee is handled, whether optional products are included, and whether early payoff changes the cost. Recalculate whenever one of those terms changes.
Frequently asked questions
Does the calculator use APR or the interest rate for the payment?
It uses the interest rate because that rate drives interest on the outstanding balance. APR is a broader annualized cost measure that may include eligible fees.
Is an origination fee included in the monthly payment?
This calculator assumes the fee is deducted from the proceeds. Some lenders handle fees differently, so review the actual disclosure and change your comparison accordingly.
Why is estimated borrowing cost higher than scheduled interest?
With a deducted fee, you receive less cash than the stated balance but repay the stated balance plus interest. The fee therefore adds to the cost relative to cash received.
Sources and methodology
Karma Loans uses primary government and regulatory sources for material definitions and consumer guidance. Calculators use the assumptions shown beside each tool and round displayed results to two decimal places.
Educational use only. This article and its calculators are not financial, legal, tax, or accounting advice. Karma Loans is not a lender and does not make credit decisions. Provider disclosures and signed agreements control.