What a US flex loan is
US lenders use the name 'flex loan' for different products: fixed-payment plans, lines of credit and short-term loans. This page models one of them: an instalment loan with equal monthly payments, an optional origination fee and no charge for paying it off early. For a line of credit or a short advance with a fee, use the flex loan APR calculator or the business line of credit calculator. In the UK 'flexi loan' is a business loan with a monthly rate, which the UK page covers.
The monthly rate is the APR divided by 12, and the payment is amount × r ÷ (1 − (1 + r)^−n). The APR shown is the nominal rate, the periodic rate multiplied by the 12 periods in a year (Regulation Z, 12 CFR 1026.14(b)), found by solving for the rate that equates the cash you receive after the fee with the payments.
Worked example: $15,000 over 24 months at 12%
A $15,000 loan over 24 months at 12% has a payment of $706.10 a month. The total repayable is $16,946.45, of which $1,946.45 is interest. With no fee the APR is the 12.00% rate itself.
An origination fee and paying off early
A 3% origination fee deducted from the loan is $450.00, so you receive $14,550.00, and the APR including the fee is 15.09%. Paying off the same loan after 12 payments leaves a balance of $7,947.23 and saves $525.99 of interest, with no prepayment charge assumed. Check your agreement for one.
What this calculator leaves out
It leaves out a variable rate, late fees, payment holidays, a monthly account fee, and any prepayment charge. The results are estimates, not a lender's offer.
To see why a flex product's APR can be far above its rate, use the flex loan APR calculator.
To price a revolving line of credit, use the business line of credit calculator.
Use the right country page
This page uses dollars and US terms such as an origination fee and APR. The country choices above the inputs open separate local pages. Choosing United Kingdom opens the UK flexi loan calculator, which takes a rate per month or per year and shows an effective annual rate. Inputs reset and amounts are not converted.
Inputs for the flex loan calculator
Loan amount
How much you want to borrow, before any fee is taken from it.
Interest rate (APR)
The yearly rate on the loan, before fees.
Term
The months you take to repay the loan. A whole number up to 120.
Origination fee
A percentage of the loan, from your quote. Enter zero if none.
Origination fee is
Deducted means you receive less. Added means you pay interest on it. Separate means cash.
Settle the loan after
Repay the whole balance after this many months to see the saving. Zero runs to the end.
CALCULATOR QUESTIONS
US flex loan calculator questions
How do you calculate a flex loan payment?
Payment = amount × r ÷ (1 − (1 + r)^−n), with r the APR divided by 12. $15,000 over 24 months at 12% is $706.10 a month.
What does an origination fee do to the APR?
It reduces the cash you receive. A 3% fee lifts the APR from 12% to 15.09%.
How much does paying off early save?
Paying the loan off after 12 payments saves $525.99 of interest.
Is a US flex loan the same as a line of credit?
Not necessarily. The name covers several products, so check how yours charges interest and fees.
Is the APR nominal?
Yes: the periodic rate times 12, as Regulation Z defines it for APR.