Calculate the net amount you receive from a loan after all deductions and fees.
Understanding the Net Loan Amount
When you take out a loan, the amount you see advertised or quoted is typically the loan principal. However, the actual amount of money that ends up in your bank account (the "net loan amount") is often less due to various upfront fees and charges deducted by the lender. Understanding these deductions is crucial for financial planning and ensuring you borrow the correct amount to cover your needs.
What is the Net Loan Amount?
The net loan amount is the gross loan principal minus all the fees and charges that the lender deducts at the time of disbursement. It's the "take-home" amount you actually receive from the loan.
Common Loan Fees Included in the Calculation:
Loan Processing Fee: A fee charged by the lender to process your loan application. It's often a percentage of the loan amount.
Origination Fee: A fee charged by the lender for originating or creating the loan. Similar to processing fees, this is usually a percentage.
Appraisal Fee: Covers the cost of appraising the collateral (e.g., a house) to determine its market value.
Credit Report Fee: The cost incurred by the lender to pull your credit report and assess your creditworthiness.
Title Search Fee: For secured loans (like mortgages), this fee covers the cost of searching public records to ensure the property has a clear title and no liens.
Document Preparation Fee: Charges for preparing all the necessary loan documents and legal paperwork.
Other Fees: Depending on the type of loan, there might be other miscellaneous fees such as underwriting fees, notary fees, or recording fees.
Our calculator simplifies this by allowing you to input each specific fee, whether it's a percentage of the loan principal or a fixed dollar amount. It then sums up all these fees and subtracts them from the initial loan principal to give you the net amount you will receive.
Why Use This Calculator?
Budgeting: Know the exact amount available for your intended purpose.
Comparison: Compare offers from different lenders by understanding the true cost beyond the interest rate.
Negotiation: Be informed about potential fees that might be negotiable.
Financial Planning: Ensure you borrow enough to cover both your needs and all associated upfront costs.
function calculateNetLoan() {
var loanAmount = parseFloat(document.getElementById("loanAmount").value);
var processingFeePercentage = parseFloat(document.getElementById("processingFeePercentage").value);
var originationFeePercentage = parseFloat(document.getElementById("originationFeePercentage").value);
var appraisalFee = parseFloat(document.getElementById("appraisalFee").value);
var creditReportFee = parseFloat(document.getElementById("creditReportFee").value);
var titleSearchFee = parseFloat(document.getElementById("titleSearchFee").value);
var documentPrepFee = parseFloat(document.getElementById("documentPrepFee").value);
var resultDiv = document.getElementById("result");
resultDiv.innerHTML = "; // Clear previous results
// Validate inputs
if (isNaN(loanAmount) || loanAmount <= 0) {
resultDiv.innerHTML = "Please enter a valid loan principal amount.";
return;
}
if (isNaN(processingFeePercentage)) processingFeePercentage = 0;
if (isNaN(originationFeePercentage)) originationFeePercentage = 0;
if (isNaN(appraisalFee)) appraisalFee = 0;
if (isNaN(creditReportFee)) creditReportFee = 0;
if (isNaN(titleSearchFee)) titleSearchFee = 0;
if (isNaN(documentPrepFee)) documentPrepFee = 0;
var processingFeeAmount = loanAmount * (processingFeePercentage / 100);
var originationFeeAmount = loanAmount * (originationFeePercentage / 100);
var totalFees = processingFeeAmount + originationFeeAmount + appraisalFee + creditReportFee + titleSearchFee + documentPrepFee;
var netLoanAmount = loanAmount – totalFees;
// Ensure net loan amount is not negative
if (netLoanAmount < 0) {
netLoanAmount = 0;
}
resultDiv.innerHTML = "Total Fees Deducted: $" + totalFees.toFixed(2) + "" +
"Net Loan Amount Received: $" + netLoanAmount.toFixed(2) + "";
}