An origination fee is a charge some lenders take for setting up the loan, commonly 1–8% of the loan amount. This calculator deducts that fee from the cash you receive. You still make payments on the full loan amount, so a fee raises the true cost of borrowing.

Yes. Personal loan APRs are usually risk-based. Stronger credit, stable income, and lower existing debt typically qualify for a better rate. The 11.5% default is a planning example, not a quote from a specific lender.

Most personal loans are unsecured: no collateral, with the rate based on your credit. A secured personal loan is backed by an asset (such as a savings account or vehicle). Secured loans can cost less if you qualify, but you risk the collateral if you miss payments.

Many personal loans allow extra payments or full payoff at any time, which can cut total interest. Some contracts include a prepayment penalty. This estimate assumes you make the scheduled payment for the full term with no extras.