This business loan repayment calculator works out the monthly payment, total interest and total repaid for a loan from its amount, annual rate and term in months. Cloverglen Finance, a small-business funding broker in Muncie, Indiana, provides it for Delaware County owners as illustrative arithmetic only, not an offer or an estimate of terms.
What to enter
- Loan amount: the amount you would receive.
- Annual interest rate: the rate stated in the offer, or a figure you want to test.
- Term: how many months of payments.
The calculator assumes equal monthly payments that pay the loan off completely by the last one, which is how a standard amortizing term loan works.
What it returns
- Monthly payment: the fixed installment.
- Total interest: what you pay on top of the sum borrowed.
- Total repaid: the sum of all payments.
A check on the arithmetic
To test the method only: a hypothetical $24,000 at a 0 percent rate over 24 months gives a payment of $1,000, total interest of $0 and a total repaid of $24,000. Any positive rate raises all three figures except the amount itself. Treat it as a sum, not a quote.
Steps to do by hand
- Fees. Origination or documentation fees deducted at closing are not included. Subtract them from the amount you actually receive, and add them to the total cost.
- Weekly or daily payments. The calculator works in months. Offers with weekly or daily payments will not match it exactly.
- Balloon payments. If an offer ends with a lump sum, this calculator does not model it.
- First month's interest. Multiply the amount by the annual rate and divide by 12 to see roughly how much of the first payment is interest.
This is not a merchant cash advance calculator: an advance is not a loan and is priced with a factor rate, not interest. It is also not a line of credit tool, because a line's balance changes with each draw.
Reading the result
A payment that fits this month's budget is only half the answer. Set the monthly figure against an ordinary month's cash flow, not the strongest month of the year, and check that the total repaid makes sense against what the money will earn or save over the term.
Using it to compare two loan offers
Run each offer through the calculator with its own amount, rate and term, then add each offer's fees to its total repaid. The offer with the lower total is not automatically the right one; a longer term costs more overall but lowers the monthly payment. Decide which matters more for the business. For the structures themselves, see business term loans and working capital financing; for other tools and guides, the resources page.
By Cloverglen Finance ยท Updated