Original research
Is the origination fee deducted or financed?
Quick answer
A fee can come out of the loan, be paid on its own, or be added to what you owe. Those choices change your cash and may change interest. Ask how your fee is charged before comparing offers. The same fee amount can leave you with a different bill.
This 17-program sample is not the whole market and cannot predict your offer. CC BY 4.0 covers Rung-owned work, with third-party material excluded. This working report is public. Publisher review and third-party source clearance remain pending; no completed reviewer approval is claimed.
Follow a $500 fee
These made-up examples all start with a $10,000 cash need and a flat $500 fee. They leave out interest and other charges to show where the fee goes. A real percentage fee may be calculated on a different amount.
Scroll across to see all columns.
| Check | Taken out | Paid separately | Added to balance |
|---|---|---|---|
| Starting loan balance | $10,500 | $10,000 | $10,500 |
| Fee taken before funds arrive | $500 | $0 | $0 |
| Cash from the loan | $10,000 | $10,000 | $10,000 |
| Extra cash needed now | $0 | $500 | $0 |
In the first and third examples, you owe $10,500 before interest. In the second, you owe $10,000 but need $500 of your own cash for the fee. Count the fee once and check whether it also adds interest.
Follow the fee through the transaction
Scroll across to see all columns.
| Program | Published treatment | Fee range |
|---|---|---|
| Prosper | deducted | 1% to 9.99% |
| Oportun | deducted | up to 10% (minimum not confirmed) |
| Upstart | deducted | We could not confirm this |
| Happen Bank | deducted | 0% to 8% |
| SoFi | deducted | 0% to 7% |
| OneMain Financial | variable | 1% to 10% |
| Upgrade | deducted | 1.85% to 9.99% |
| Best Egg | variable | 0.99% to 9.99% |
| Avant | deducted | up to 9.99% (minimum not confirmed) |
| LendingPoint | variable | up to 10% (minimum not confirmed) |
| Discover | none | 0% |
| Wells Fargo | none | 0% |
| U.S. Bank | none | 0% |
| PNC | none | 0% |
| Citi | none | 0% |
| Alliant Credit Union | none | 0% |
| PenFed Credit Union | none | 0% |
Variable treatment needs a narrower answer
The dated sources show more than one fee method for Best Egg and LendingPoint. OneMain’s method varies by state. The study could not use one national rule to work out its cash after fees.
Do not use deduction math for a financed fee
Check the next part of your offer
Compare the cash and total cost in your own disclosure.
Use the research to ask better questions. Check the final terms before you sign.