Continue your simulation with the Rocket Loans calculator and learn how a deducted origination fee changes both the cash and the cost.
Rocket Loans usually deducts its origination fee from the money it transfers, so the loan amount and the cash you receive differ. In this guide you will learn how to calculate payments, how to size the loan so you receive the cash you require, how the fee increases the APR and how your choice of term influences the total.
Direct answer: divide the cash you need by one minus the fee rate to find the loan amount, then calculate the payment with the amortisation formula. Needing US$15,000 with a 6% fee means borrowing about US$15,960. At 15% over three years the payment is roughly US$553, and the total cost of the cash is close to US$4,900.
Reviews in 2026 described Rocket Loans origination fees of up to 9.99%, APRs from roughly 8% to about 29.99%, terms of 36 or 60 months and loans from US$2,000 to US$45,000. They also mentioned a modest autopay discount and no prepayment penalty, which means extra payments reduce the interest you owe without any additional charge.
The most common error is requesting exactly the amount needed and then discovering the deposit is short. If you borrow US$15,000 with a 6% fee, only US$14,100 arrives. That gap can derail a planned purchase or debt payoff. Grossing up the amount before applying solves the problem, as long as the larger payment still fits your budget.
Next, you will see the inputs, the gross-up formula, payment tables for both terms, how fees change the APR, the effect of the autopay discount, extra payments, a debt payoff example, mistakes to avoid and a checklist. Keep your prequalified offer nearby, because the fee rate and APR it shows are the figures you should place into the calculation.
Inputs for the calculation
- Cash you actually need to receive.
- Origination fee rate from your offer.
- Interest rate and APR from your offer.
- Term of 36 or 60 months.
- Whether you will enrol in autopay.
The gross-up formula
Loan amount = cash needed ÷ (1 − fee rate). With US$15,000 needed and a 6% fee, the loan is 15,000 ÷ 0.94 = US$15,957, rounded to about US$15,960. The lender deducts about US$960 and sends US$15,000. Your payments are based on the full US$15,960, so the fee also accumulates interest throughout the term.
| Cash needed | Fee rate | Loan amount | Fee deducted |
|---|---|---|---|
| US$10,000 | 3% | about US$10,310 | about US$310 |
| US$15,000 | 6% | about US$15,960 | about US$960 |
| US$20,000 | 9% | about US$21,980 | about US$1,980 |
Payments for both terms
Using P·r/(1−(1+r)^−n) with P = US$15,960 and an interest rate of 15%, the three-year payment is about US$553 and the five-year payment about US$380. The table shows the total paid and the cost compared with the US$15,000 actually received.
| Term | Monthly payment | Total paid | Cost of US$15,000 received |
|---|---|---|---|
| 36 months | about US$553 | about US$19,920 | about US$4,920 |
| 60 months | about US$380 | about US$22,780 | about US$7,780 |
The five-year option lowers the payment by about US$173 but adds roughly US$2,860 to the cost. Choose the longer term only if the shorter payment would strain your budget.
How the fee changes the APR
| Fee on US$10,000 at 12% for 36 months | Cash received | Approximate APR |
|---|---|---|
| 0% | US$10,000 | 12.0% |
| 3% | US$9,700 | about 14.1% |
| 6% | US$9,400 | about 16.3% |
| 9.99% | US$9,001 | about 19.5% |
The disclosed APR already includes the fee, which is why it is higher than the interest rate. Compare APRs across lenders rather than interest rates, especially when one lender charges no origination fee.
The autopay discount
A discount of about a quarter of a point is modest. On US$10,000 at 15% for three years, it saves roughly US$40 in total. Its bigger value is behavioural: automatic payments prevent missed due dates and the US$15 late fee, and protect your credit history.
Extra payments without penalty
With no prepayment penalty, extra payments reduce the balance and future interest. Adding US$100 a month to the five-year US$15,960 loan at 15% finishes it about seventeen months early and saves around US$2,000. Lump sums from a tax refund or bonus work the same way once you have an emergency fund.
A debt payoff example
Suppose you owe US$12,000 on cards at about 24% and pay roughly US$460 a month with little progress. A Rocket Loans loan grossed up for a 5% fee would be about US$12,630. At 14% over three years, the payment is about US$432 and the debt ends on a fixed date. The saving depends on not reusing the cleared cards.
A worked home repair example
Keisha needs US$8,000 to repair her roof. Her prequalified offer shows 16% with a 4% fee. She borrows 8,000 ÷ 0.96, about US$8,330, so that US$8,000 arrives after the fee. Over three years the payment is about US$293 and the total paid about US$10,540, a cost of roughly US$2,540 for the cash she uses.
She also checks a credit union offer at 13.5% with no fee for US$8,000, about US$271 a month and US$1,770 in interest. The credit union saves her almost US$800 and a few dollars each month, so she joins it, accepting a wait of three extra days before the funds arrive.
| Offer | Loan amount | Payment | Cost of US$8,000 |
|---|---|---|---|
| Online lender, 16% + 4% fee | about US$8,330 | about US$293 | about US$2,540 |
| Credit union, 13.5%, no fee | US$8,000 | about US$271 | about US$1,770 |
Budgeting for the payment
Subtract the payment from your monthly take-home pay and regular expenses. Keep at least ten percent of income free. If the five-year payment is the only one that fits, consider borrowing less or delaying part of the purchase rather than locking in the higher total cost.
Mistakes to avoid
- Requesting the exact cash needed without grossing up.
- Comparing interest rates instead of APRs.
- Choosing 60 months only for the lower payment.
- Ignoring the effect of the fee on small loans.
- Running up card balances again after consolidation.
Comparing with a no-fee lender
If another lender offers 14.5% with no fee for US$15,000 over three years, the payment is about US$516 and the cost about US$3,590. That is cheaper than the 15% loan with a 6% fee, despite the similar interest rate. Always convert both offers to APR or total cost on the cash received.
Summary: using the Rocket Loans calculator
Gross up the loan for the deducted fee, calculate payments for both terms, compare APRs and use penalty-free extra payments to reduce cost.
- Loan = cash needed ÷ (1 − fee rate).
- Fees accrue interest because they are financed.
- APR includes the fee; compare APRs.
- Autopay discount is small but useful.
- Prepay when possible to save interest.
Frequently asked questions
Is the origination fee refundable if I repay early?
Generally no, the fee is charged at funding and is not returned.
Can I choose a term other than 36 or 60 months?
Reviews describe only 36 and 60 month options.
Why is my APR higher than my interest rate?
Because the APR includes the origination fee.
Does prequalifying show the fee?
Prequalified offers typically show the estimated APR and fee before you apply.
Can I get the money the same day?
Some reviews describe very fast funding, but timing depends on verification and your bank.
Is a 60-month term ever the better choice?
Yes, when the 36-month payment would strain your budget, provided you plan extra payments.
Conclusion
The Rocket Loans calculator only gives a true picture when you account for the deducted fee. Gross up the loan, compare APRs and total cost with other lenders, choose the shortest affordable term and use penalty-free extra payments to bring the cost down.