Amount Financed
The amount financed is what you actually receive from the lender after any fees deducted at signing. On a loan with no fees, the amount financed equals the loan amount. On a loan with a $50 origination fee deducted up front, the amount financed is $50 less than the principal you repay. It's one of the four required Truth in Lending Act disclosures.
The amount financed answers a specific question: how much money is actually arriving in your account at funding? It’s the principal of the loan minus any fees the lender deducts at signing.
Why the distinction matters
If you borrow $1,000 with a $50 origination fee deducted at signing, you’ll see $950 hit your account. But you’ll repay based on the full $1,000 principal at the disclosed rate. This is what makes APR higher than the interest rate when there are origination fees: you’re paying interest on money you didn’t fully receive.
When budgeting for what you’ll actually have in hand after taking a loan, use the amount financed, not the loan amount. The two are often confused but they can differ significantly on subprime loans where origination fees of 5-10% are common.
Where to find it
The amount financed is one of four required TILA disclosures (along with APR, finance charge, and total of payments). Look for the “Federal Disclosures” or “TILA box” in any loan agreement: it’ll be clearly labeled. If it’s not there, something is wrong with the disclosure.