Loan Fee Calculator – Tutorial
On this page, you can find the logic, usage, and important details of the Loan Fee Calculator calculator.
Loan Origination Fee – Detailed Guide
When granting loans, banks sometimes charge a "loan origination fee" (also called a "processing fee" or "administration fee"). This calculator quickly shows this fee using an upper limit scenario.
1) What is a loan origination fee?
- The origination fee is charged by the bank for the operational assessment and setup processes involved in granting a loan.
- It is not mandatory for every loan: banks may run promotions, some loans may have no fee, or it may be applied differently.
- This tool should be treated as an upper limit (maximum) scenario estimate.
2) What does "5 per thousand" (‰5) mean?
"5 per thousand" means ‰5. Mathematically:
- ‰5 = 5 / 1000 = 0.005 = 0.5%
So if the loan amount is P, the origination fee (upper limit scenario) is:
Origination Fee = P × 0.005
2.1 Example
- Loan amount: 100,000 TL
- Rate: ‰5 (0.005)
- Origination fee: 100,000 × 0.005 = 500 TL
3) What is BSTV? When is it added?
BSTV (Banking and Insurance Transactions Tax – BSMV in Turkish) is a tax levied on certain banking transactions. It may appear in practice on banking service fees such as origination fees.
However, since the BSTV rate and application details can vary by transaction/loan type, this calculator makes BSTV optional with an adjustable rate.
3.1 Formula with BSTV
If origination fee is F and BSTV rate is t:
BSTV = F × (t/100)
Total = F + BSTV
3.2 Example (hypothetical)
- Origination fee: 500 TL
- BSTV rate: 5%
- BSTV: 500 × 0.05 = 25 TL
- Total: 500 + 25 = 525 TL
4) How to use this calculator
- Enter the Loan Amount.
- Optionally change the "Upper limit rate (‰)" (default ‰5).
- If BSTV applies, select "Yes" and enter the rate (default 5%).
- View both numeric values and formatted TL amounts in the results.
5) How to interpret the results
- This tool gives an estimate close to the "upper limit scenario"; the actual fee charged by the bank may be lower or non-existent.
- For exact information, consult the bank's loan information form / fee-commission list and contract terms.
- Beyond the origination fee: appraisal, insurance, mortgage registration, account maintenance, and other items may also arise.
Warning: This content is for informational purposes; regulations and practices may change over time.