Business Loan Calculator

When you use the calculator, you’ll be able to see what your monthly payment will be according to the factors you inputted. The monthly payment amount includes the interest and other fees you may need to pay. The total payment amount will show you how much you’ll have paid to the lender once the loan is completed.

The biggest benefit of using an online loan calculator is it allows you to be aware of how much you’ll be paying in interest over the course of your loan. Paying a small percentage each month may seem inconsequential but seeing the math laid out for you might be a shock.

For example, if you are interested in a term loan and are planning on borrowing $500,000 with the intent to pay it back over ten years at an APR of 10%, you’ll have monthly payments of just over $6,600 and pay over $292,904.80 in interest. In comparison, the same loan amount and repayment term with a higher APR - for example, a 30% APR - would have you paying over $15,000 monthly with $1,081,708.00 in interest.

A high total interest amount doesn’t make a loan bad. In fact, sometimes high APR loans might be your only option and can end up working out just fine if you pay extra each month or are simply able to handle the monthly installments as is. The point is to be aware of what the entirety of repaying your loan will look like so you don’t have any surprises later on.

Business loans are loans specifically designed for business purposes. If you take out a business loan, the lender may check the business’s credit health, your personal credit health, or both. The way the loan is handled may also affect your personal or your business’s credit score overall.

When your business receives a loan, it will either be paid out in a lump sum or you will gain access to a line of credit. The exact terms of the loan will depend on factors such as which lender you work with and your business’s financial history. You also may be offered a secured or unsecured loan. Secured loans are a type of loan that involve some kind of collateral that the lender can collect should you default on a loan.

Each loan type has its own purposes and benefits so there isn’t really a one size fits all option. Be sure you carefully consider what type of business loan you need before applying.