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Business loans often come with an origination fee deducted upfront — meaning the cash you actually receive is less than the amount you're obligated to repay.
This calculator finds your monthly payment, net proceeds after the fee, and total cost of capital for a business loan.
How it works
Enter the loan amount, annual rate, term, and origination fee percentage. The calculator computes your monthly payment on the full loan amount, then separately shows the net cash you'll actually receive after the origination fee is deducted.
- Enter loan amount ($).
- Enter annual interest rate (%).
- Enter term (years).
- Enter origination fee (%).
- Click Calculate to see your results.
Examples
$100,000 loan, 9%, 5 years, 2% fee
A $100,000 business loan at 9% over 5 years has a $2,075.84 monthly payment, but a 2% origination fee means you only receive $98,000 upfront.
Who should use it
- Comparing business loan offers with different origination fees.
- Understanding how much cash you'll actually receive from a loan after fees.
Industry applications
- Small business financing
- Commercial lending
Advantages
- Separates net proceeds from the loan's repayment obligation, showing the real cash impact of the fee.
- Reports total cost of capital combining interest and fees in one figure.
Limitations
- Doesn't account for other possible fees (like prepayment penalties) beyond the origination fee.
Common mistakes to avoid
- Comparing loan offers by interest rate alone without factoring in origination fees, which can meaningfully change the true cost.
- Assuming the net proceeds figure (after the fee) is what your monthly payment is based on — it isn't.
Best practices
- Compare the total cost of capital (interest plus fees), not just the interest rate, when evaluating multiple loan offers.
Tips
- A lower interest rate with a high origination fee can sometimes cost more in total than a slightly higher rate with no fee — always compare the total cost of capital, not just the headline rate.