Loan Fees Calculator
Calculate total loan origination costs including points, fees, and prepaid items to understand true borrowing costs.
Principal amount
Lender processing fee
Prepaid interest
Property valuation
Credit check fee
Title, attorney, etc.
Origination Amount
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Points Amount
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Total Fees
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Net Proceeds
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Fees as %
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How to Use This Calculator
Step-by-Step Guide
- Enter Loan Amount: The principal amount you're borrowing.
- Enter Origination Fee: Lender processing fee (typically 0-2%).
- Enter Discount Points: Prepaid interest to lower your rate.
- Enter Other Fees: Appraisal, credit report, title fees, etc.
- Review Results: See total fees and net loan proceeds.
Common Loan Fees
- Origination Fee: 0.5-2% of loan amount for processing.
- Discount Points: 1 point = 1% of loan, typically reduces rate by 0.25%.
- Appraisal Fee: $300-$600 for property valuation.
- Title Fees: Title search and insurance ($500-$1,500).
- SBA Guarantee Fee: 0-3.75% for SBA loans.
Why This Matters
Understanding loan fees helps you:
- Compare true costs between lenders
- Negotiate fees effectively
- Plan for closing costs
- Decide if paying points makes sense
Frequently Asked Questions
Common loan fees include: Origination fee (0.5-1% of loan amount), Application fee ($0-$500), Credit check fee ($25-$50), Appraisal fee ($300-$500 for real estate), Title search ($200-$400), and Prepayment penalties (varies). Always ask for a complete fee breakdown.
Some fees are negotiable, especially origination fees and application fees. Third-party fees (appraisal, title) are usually fixed. Shop multiple lenders and use competing offers as leverage. Some lenders offer no-fee loans but charge higher interest rates—compare the total cost.
Discount points (1 point = 1% of loan amount) typically lower your rate by 0.25%. Pay points if you plan to keep the loan long enough to recoup the cost through lower payments. For example, $3,000 in points that saves $50/month pays for itself in 5 years. Do not pay points if you will refinance or sell soon.
Often yes, but this increases your loan amount and total interest paid. Rolling in fees is convenient if you are cash-constrained, but you will pay interest on those fees over the loan term. For large loans, consider paying fees upfront to minimize total cost.
A prepayment penalty is a fee charged if you pay off your loan early. It is typically 1-3% of the remaining balance or a certain number of months' interest. Not all loans have them—ask before signing. Avoid prepayment penalties if you plan to refinance or pay off the loan early.
Find the Right Business Loan
- Compare 75+ lenders
- Rates as low as 5.49%
- Funding in 24-48 hours
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