Understand the result
Separate the rate from the cost of borrowing
The stated interest rate determines the scheduled principal-and-interest payment, but fees can increase what the financing truly costs. An origination fee may even be withheld from proceeds, meaning you receive less cash than the principal balance you must repay.
The calculator therefore shows both the contractual payment math and a fee-adjusted annualized rate based on entered cash flows.
Compare offers using the same assumptions
- Use the same loan amount and term for each lender.
- Enter origination and closing fees instead of comparing rate alone.
- Compare total borrowing cost as well as monthly payment.
- Remember that legal APR disclosures may treat individual fees differently.