Business Loan Calculator · Practical guide
Business Loan Calculator with Origination Fee
Origination fees come off the top of your loan — see what they really cost before you sign.
At a glance
What an Origination Fee Does to Your Loan
An origination fee is a processing charge, typically 1–5% of the loan amount, deducted from your proceeds at closing. Borrow $100,000 with a 2% fee and $2,000 comes off the top: $98,000 lands in your account, but your payments are calculated on the full $100,000. That mismatch is why fee-bearing loans always cost more than the stated rate suggests.
Interactive tool
Business Loan Calculator
Enter your own values, then compare the result with the examples below.
A Worked Example
Take a $50,000 loan at 9% over 3 years with a 2% origination fee. The monthly payment is $1,589.99, producing $7,239.52 of interest. Add the $1,000 fee and the total cost reaches $58,239.52. Because you only received $49,000 in usable funds, the estimated APR is 10.39% — nearly a point and a half above the 9% headline rate.
How Fee Size Moves the APR
| Origination Fee | Fee on $100K | Estimated APR (7.5% rate, 5 yr) |
|---|---|---|
| 0% | $0 | 7.50% |
| 1% | $1,000 | 7.93% |
| 2% | $2,000 | 8.36% |
| 3% | $3,000 | 8.79% |
| 5% | $5,000 | 9.69% |
Use APR to Compare Offers
Because the fee is baked into the APR, comparing APRs — not interest rates — is the honest way to shop. A 7.5% loan with a 3% fee (APR 8.79%) is more expensive than an 8% loan with no fee (APR 8.0%), even though the headline rate looks better. Short terms amplify the effect: the same 2% fee on a 2-year $100,000 loan at 7.5% drives the APR to about 9.51%, because the upfront cost is spread over fewer payments.
Frequently Asked Questions
Are origination fees negotiable?
Often, yes — especially for strong borrowers or when you hold a competing offer. Even a half-point reduction on $100,000 saves $500 at closing.
Is the fee added to the loan or deducted from it?
Usually deducted: you receive the loan amount minus the fee but repay the full amount. Some lenders let you add it to the balance instead, which increases interest costs.
What is a typical origination fee range?
Bank and SBA loans often run 0.5–3%, while online lenders commonly charge 1–6%. Anything above that range deserves scrutiny of the rest of the terms.
Do all business loans charge origination fees?
No. Some lenders roll costs into the rate instead. A no-fee loan is not automatically cheaper — compare APRs to see the full picture.