Taking out a loan is a big commitment, but it can help you grow your business. Determine what your payment will be, including interest.
Before you start looking for a small business loan, you will need to keep monthly payments, interest rates and the length of the loan in mind. Use this calculator to map out options before trying to qualify for a loan. If you don’t get the results you expected the first time around, experiment with the calculator to get different outcomes that might be more affordable.
Making your regular monthly payments on time is the easiest way to keep your loan costs under control. Also consider making additional payments to speed up the repayment process. Set calendar reminders to stay on track or schedule automatic payments from your bank account to avoid late fees. Also consider making additional payments to speed up the repayment process. Find out from your lender if there are any potential penalties or discounts that could apply to your loan. Some lenders might offer you a discount for paying off your loan ahead of schedule. Others might discourage prepayments by enforcing penalties.
The total amount of money you could receive from your lender.
Annual Interest Rate*
The interest rate is the rate a lender charges to borrow funds over the term of a loan; it is usually expressed as a percentage of the principal amount. Lenders typically offer lower rates to borrowers who are considered low risk and higher rates to those who are considered high risk. Credit score is one factor that determines how low or high risk a borrower may be.
How often you make a loan payment.
Loan Term or Repayment Period*
Number of payments to pay back the loan.
Fees, such as loan application and origination.
Fees, such as customer service or billing, to manage the loan.
* Indicates a required field
Total interest and fees
Understanding Your Results
The results will show your monthly payments, plus how much interest you would pay on the principal loan amount. You can even add extra payments to find out how paying a little extra per month can reduce your total interest paid and speed up your payback schedule. Make sure you understand the terms of your loan before you make extra payments; you’ll want to ensure you will not be penalized by your lender.
Before exploring this calculator familiarize yourself with some of the terms and definitions that are used in this financial tool.
Extra monthly payment: Adding extra payments to decrease your term loan and total payback amount.
Annual interest rate: The interest rate is the rate a lender charges to borrow funds over the term of a loan; it is usually expressed as a percentage of the principal amount. Lenders typically offer lower rates to borrowers who are considered low risk and higher rates to those who are considered high risk. Credit score is one factor that determines how low or high risk a borrower may be.
Loan amount: The total amount of money you could receive from your lender.
Loan term: The term or length of time to payback the loan.
Monthly fees: Fees such as customer service or billing, to manage and administrate the loan.
Origination fee: This is a fee charged for processing the loan application and approval, including verifying a borrower’s information.
Prepayment penalty: You wouldn’t think you would be penalized for paying off a loan early, but it can happen. Prepayment penalties are charged for prepaying on a loan balance. These penalties may be included in the loan contract as a way to protect the lender from the loss of paid interest arising from prepayment or early payment.
Upfront fees: Upfront fees can include the costs associated with processing a loan application, and origination fees.
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