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Loan Origination Fee Calculator

Enter the loan amount, origination fee percentage, and fixed fee to find the total fee and net proceeds.

Result

$3,500.00
$196,500.00
1.75%

How it is calculated

The total fee is a percentage of the loan plus a flat charge: fee = loan × fee% ÷ 100 + fixed fee. The tool assumes the fee is taken out of the loan at closing, so net proceeds = loan − fee. The effective percentage shows the whole fee, flat part included, relative to the loan: effective % = fee ÷ loan × 100. One "point" equals 1% of the loan, so 1.5 points is entered as 1.5. Loan amount must be above zero, and the percentage and fixed fee cannot be negative. If the total fee would be larger than the loan itself, no result is shown, since the net proceeds would be negative. Type 0 in the fixed fee box when there is none, because a blank field gives no result. It does not include interest, which is a separate cost of the loan.

Worked example

You borrow $200,000 and the lender charges 1.5% plus a $500 processing fee. Percentage part: 200000 × 1.5 ÷ 100 = $3,000.00. Add the fixed fee: 3000 + 500 = $3,500.00. Net proceeds: 200000 − 3500 = $196,500.00. Effective cost: 3500 ÷ 200000 × 100 = 1.75%. The tool shows a total fee of $3,500.00, net proceeds of $196,500.00 and an effective rate of 1.75%, so the flat fee adds 0.25 points on top of the 1.5%.

Try this example →

Common mistakes

  • Entering the percentage as a decimal such as 0.015. The field takes a percentage, so 0.015 is read as 0.015% and the fee is almost nothing.
  • Forgetting the fixed fee when comparing offers. A 1% fee with a $1,500 flat charge costs more than a 1.5% fee with no flat charge on a $200,000 loan, but the percentage alone hides this.
  • Assuming you receive the full loan amount. When the fee is deducted at closing, you receive the net proceeds, so plan the purchase around that smaller number.
  • Treating the origination fee as the cost of borrowing. It is only the upfront part; interest and other charges are not included.
  • Leaving the fixed fee blank when there is none. The field must contain 0, or the tool gives no result.

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.

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