🏢 Business Loan Calculator
Calculate your business loan payments and true borrowing costs
📝 Loan Details
💰 Loan Fees
Payment Composition
Cost Breakdown
Amortization Schedule
| Year | Interest | Principal | Ending Balance |
|---|---|---|---|
| 1 | $1,835.98 | $7,222.21 | $32,777.79 |
| 2 | $1,466.48 | $7,591.71 | $25,186.08 |
| 3 | $1,078.07 | $7,980.12 | $17,205.96 |
| 4 | $669.80 | $8,388.40 | $8,817.56 |
| 5 | $240.63 | $8,817.56 | $0.00 |
ℹ️ About Business Loans
Understanding Business Loan Costs
Business loans provide capital for companies to grow, purchase equipment, or manage cash flow. This calculator helps you understand the true cost of borrowing by including both interest and fees in the calculations.
The Annual Percentage Rate (APR) reflects the true cost of the loan, including all fees, expressed as a yearly rate. This allows you to compare different loan offers more accurately.
SBA Loans
Government-backed loans with favorable terms for small businesses. Types include:
- 7(a) Loans: Up to $5 million for various purposes
- Microloans: Up to $50,000 for small needs
- CDC/504 Loans: For real estate and equipment
- Disaster Loans: For recovery after declared disasters
Conventional Loans
Traditional bank loans including:
- Term loans
- Lines of credit
- Equipment financing
- Commercial mortgages
Alternative Financing
Includes options like:
- Invoice factoring
- Merchant cash advances
- Peer-to-peer lending
- Crowdfunding
Common Business Loan Fees
- Origination Fee: 1-6% of loan amount for processing
- Documentation Fee: Flat fee for paperwork
- Application Fee: Upfront charge to review application
- Prepayment Penalty: For paying off loan early
- Late Payment Fee: For missed payments
Why Fees Matter
Fees can significantly increase the true cost of your loan. A loan with a lower interest rate but higher fees may actually be more expensive than one with a slightly higher rate but no fees.
This calculator accounts for all fees to show you the real APR (Annual Percentage Rate) of your loan.
Step-by-Step Guide
- Enter your loan amount
- Input the interest rate (APR)
- Select how often interest compounds
- Set your loan term in years and months
- Choose your payment frequency
- Enter any loan fees (origination, documentation, etc.)
- Click "Calculate Loan" to see results
Understanding the Results
- Payment Amount: Your regular payment amount
- Total Payments: Sum of all payments over loan term
- Total Interest: Just the interest portion
- Interest + Fees: Total borrowing cost
- Real Rate (APR): True annual cost including fees
Scenario: You're borrowing $10,000 at 10% interest for 5 years with monthly payments. The loan has a 5% origination fee ($500) and $750 documentation fee.
Calculations:
- Monthly Payment: $212.47
- Total Payments: $212.47 × 60 = $12,748.23
- Principal: $10,000
- Interest: $2,748.23
- Fees: $500 + $750 = $1,250
- Total Cost: $10,000 + $2,748.23 + $1,250 = $13,998.23
- Real APR (including fees): 15.931%
This example shows how fees can increase the true cost of borrowing beyond the stated interest rate.
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