This first business loan payment calculator takes a loan amount, an annual interest rate and a term in months and returns the monthly payment, the total interest and the total repaid for a fully amortizing loan. Juniperhollow Funding, a small-business funding broker in Lawton, Oklahoma, provides it as illustrative arithmetic only, not an offer or an estimate of terms.
What the calculator works out
- Monthly payment: the level payment that clears the loan over the term you enter.
- Total interest: everything paid above the amount borrowed.
- Total repaid: the amount borrowed plus the total interest.
It assumes equal monthly payments and a fixed rate for the whole term. It does not include fees, and it does not model balloons, variable rates or weekly schedules.
How to fill it in
- Amount: the sum you would actually receive and owe, not the project's total cost if you are paying part yourself.
- Annual rate: the yearly interest rate written on the offer, or a rate you want to test.
- Term: how many months the loan runs.
A check you can do in your head
Enter a rate of zero and the monthly payment is simply the amount divided by the months. As a purely hypothetical test, $24,000 over 24 months at zero interest gives $1,000 a month and no interest. Any real rate pushes the payment and the totals above that line, which is a quick way to see how much of each payment is the cost of borrowing.
What you still work out by hand
Fees. If an offer deducts an origination or other fee from the money you receive, the calculator's totals understate the cost. Add the fee to the total interest by hand to see the full cost of the loan.
Weekly or daily payments. The tool reports a monthly figure only. If an offer debits weekly, ask the lender for its weekly amount and multiply it by the number of weeks to compare totals; dividing the monthly result by four is only a rough guide.
Can the business afford it? Compare the monthly payment with what your bank statements show is left after normal costs in a slow month. That comparison is yours to make; the tool does not assess affordability.
Tips for a first business loan
Try the same amount at two or three terms. A longer term lowers the monthly payment but raises total interest; seeing both numbers side by side is the point of the exercise. Then read the term loans page for amortization, balloons and early payoff, and the four steps for how a real offer is made.
Why a real offer may differ
Lenders may use different day-count methods, add fees, require a balloon or set a variable rate. The calculator's result is a way to check an offer, not a prediction of one. More tools and guides are in the guide library.
By Juniperhollow Funding · Updated