Business loan payment calculator

What it does

Enter the loan amount, the annual interest rate and the term in months. The calculator uses the standard fixed-rate amortizing payment formula with monthly compounding to show the monthly payment, the total of all payments and the total interest. At a 0% rate the payment is simply the amount divided by the number of months. It does not include origination fees, balloon payments or variable rates, so it is an estimate to compare offers, not a lender quote.

Use it when comparing equipment financing, a term loan or a supplier payment plan, so you can see the monthly cost side by side before you apply. Try a few terms to find a payment your slowest month can carry, and look at the total interest line as well as the monthly payment, because a lower payment over more months often costs more overall. Bring the numbers to your lender and ask them to confirm the exact figures in writing.

How to use it

1. Enter the amount you plan to borrow.
2. Enter the annual interest rate from the offer.
3. Enter the term in months (60 for five years).
4. Compare the monthly payment and total interest across offers.

Tips

• A shorter term raises the payment but cuts total interest.
• Add fees you must finance to the loan amount.
• Check the payment against a slow month, not an average one.
• Ask the lender for an amortization schedule to confirm.