Worked loan examples

Follow the calculation, then change the assumptions

All figures are hypothetical USD examples, not current offers. Monthly loan models use the annual note rate divided by 12, equal end-of-month installments and full precision before display rounding. No professional review or lender quote verification is implied.

A $10,000 quote with a withheld $500 fee

The quoted principal stays $10,000, but only $9,500 reaches the borrower. The monthly payment is based on the principal, not the deposit.

Cash = 10,000 − 500. Monthly payment uses principal 10,000, note rate 12% and 36 months. Full outlay = installments; the withheld fee is not added again.

The same fee added to the balance

Here $10,000 is the base amount and the $500 fee is financed on top. Cash received and loan principal differ from the withheld-fee example.

Principal = 10,000 + 500. Cash received = 10,000. Model at 12% over 36 monthly periods. Do not compare these two fee examples as equal proceeds.

A positive month can still have a payment gap

Opening cash is $300. A $350 installment falls due November 5, before a $900 payday November 6. A later $600 expense leaves a positive closing balance.

After the installment: 300 − 350 = −50. Then add 900 and subtract 600. Posting order and available bank balances can differ; this is not an overdraft-fee forecast.

A smaller refinance payment can cost more

Compare a $12,000 balance at 6% with 36 months left against 4% over 60 months and $300 paid outside the new loan.

Full outlay includes the new cash fee once. Month-24 saving compares payments plus hypothetical remaining principal at the same horizon. Negative saving means higher modeled cost.

Keep $1,500 or apply it after payment one

A $10,000 balance at 12% over 36 months is tested with scheduled payments, a $100 monthly extra, or a $1,500 lump sum after the first installment.

Interest accrues on opening monthly principal; scheduled payment is applied before extra principal. Cash retained includes any unused capped lump sum; it is a starting comparison, not a future savings balance. These options commit different amounts and timing.

Three balances become one longer loan

Existing balances are $4,000 at 24% paying $180, $3,500 at 20% paying $150, and $2,500 at 18% paying $120. The replacement uses 18% over 60 months plus a financed $400 fee.

Old payments remain fixed with no reallocation or new spending. New principal is $10,400 and payoff cash is $10,000. This does not model variable rates, future card minimums or actual creditor payoff quotes.

More editable scenarios

Explore repair, medical and creditor-payoff presets or read fictional document annotations. Fees and assistance background: CFPB fees guidance and CFPB consolidation guidance, checked November 9, 2026.

Scope and next steps

Educational planning only. Confirm actual costs, dates and terms before making commitments. Financial disclaimer · Editorial standards.