Business Loan Calculator
$0.00 / month
Why the Amount You Receive Is Less Than the Loan Amount
Business loans and SBA loans commonly charge an origination fee, deducted from your loan proceeds upfront. You still repay interest on the full loan amount, not the reduced amount you actually receive — which effectively raises your true borrowing cost above the stated interest rate.
Comparing Loan Offers
When comparing lenders, look at total cost (interest plus fees) rather than just the monthly payment or the interest rate alone — a lower rate with a large origination fee can cost more overall than a slightly higher rate with no fee, especially on shorter-term loans.
Not a Business Loan?
For a personal, auto, or general loan without origination fees, the loan calculator gives a simpler payment estimate.
Frequently Asked Questions
Why is the amount I receive less than the loan amount?
Origination fees are typically deducted from your loan proceeds upfront, but you still owe interest on the full loan amount.
What is a typical origination fee?
Origination fees commonly range from 1% to 6% of the loan amount, depending on the lender and loan type.