{
  "@context": "https://schema.org",
  "@type": "Dataset",
  "name": "How do you calculate a loan origination fee?",
  "description": "Origination fee = loan amount × the lender's percentage, typically 0.5–1%. On a $320,000 loan that's $1,600–$3,200. It's separate from discount points, which are optional prepaid interest (1 point = 1% of the loan) used to buy a lower rate.",
  "url": "https://www.revenuelab.fyi/answers/how-to-calculate-loan-origination-fee",
  "dateModified": "2026-10-01",
  "creator": {
    "@type": "Organization",
    "name": "RevenueLab",
    "url": "https://www.revenuelab.fyi"
  },
  "license": "https://creativecommons.org/licenses/by/4.0/",
  "keywords": [
    "Closing Costs Calculator",
    "Rent vs Buy Net Worth Calculator"
  ],
  "distribution": {
    "@type": "DataDownload",
    "contentUrl": "https://www.revenuelab.fyi/api/public/page.json?path=answers%2Fhow-to-calculate-loan-origination-fee",
    "encodingFormat": "application/json"
  },
  "json": {
    "type": "answer",
    "question": "How do you calculate a loan origination fee?",
    "shortAnswer": "Origination fee = loan amount × the lender's percentage, typically 0.5–1%. On a $320,000 loan that's $1,600–$3,200. It's separate from discount points, which are optional prepaid interest (1 point = 1% of the loan) used to buy a lower rate.",
    "tableTitle": "Origination vs discount points on a $320,000 loan",
    "columns": [
      "Charge",
      "Cost",
      "What you get"
    ],
    "rows": [
      {
        "label": "1% origination",
        "value": "$3,200",
        "note": "Lender's processing/underwriting profit"
      },
      {
        "label": "0.5% origination",
        "value": "$1,600",
        "note": "Same service, cheaper lender"
      },
      {
        "label": "1 discount point",
        "value": "$3,200",
        "note": "≈ 0.25% lower rate (varies daily)"
      },
      {
        "label": "Break-even on 1 point",
        "value": "≈ 6 years",
        "note": "$3,200 ÷ ~$45/mo saved"
      }
    ],
    "context": "Origination is the most negotiable line on the Loan Estimate — get two Loan Estimates on the same day (rates move intraday) and compare Section A. Watch for double-charging: an 'origination fee' plus separate 'processing' and 'underwriting' fees is the same cost in three coats. Points only make sense if you'll keep the loan past break-even; with the average mortgage lasting under 7 years, one point is usually the ceiling worth considering.",
    "methodology": "Fee ranges from 2025–2026 lender rate sheets; point break-even uses the payment difference on a 30-year fixed at ~6.5% vs ~6.25%.",
    "dateModified": "2026-10-01",
    "relatedCalculators": [
      {
        "label": "Closing Costs Calculator",
        "to": "/closing-costs-calculator"
      },
      {
        "label": "Rent vs Buy Net Worth Calculator",
        "to": "/rent-vs-buy-net-worth-calculator"
      }
    ],
    "relatedReading": [
      {
        "label": "How to negotiate closing costs",
        "to": "/answers/how-to-negotiate-closing-costs"
      }
    ]
  }
}