Estimate Payments With a Business Term Loan Calculator
When applying for a loan, chances are you’re asking yourself several questions that a business term loan calculator can help you answer. How much can I afford to finance and over what period? What will my payments be? And how much will this loan cost me in the long run?
Fortunately, business term loans, with their fixed payoff structures, are one of the easiest financing products to calculate. Just plug the numbers into our business term loan calculator to find the answers to these questions.
What Is a Business Term Loan?
If you’ve ever financed a vehicle, home or tuition, you’re already quite familiar with what a term loan is and how it works. You receive a sum of cash for a specific purpose, and you pay it back with fixed, equal payments over a set term.
The interest owed is front-loaded, with most of your installment going towards interest early in the life of your loan. And with each subsequent installment, a higher percentage of the payment is applied against the loan’s principal.
How to Use Our Business Term Loan Calculator
Use our business term loan calculator to estimate your payments and total cost of borrowing by simply inputting the following:
Loan Amount: Enter the amount you wish to borrow here. With Fast Capital 360, you can obtain a business term loan up to $250,000.
Estimated Interest Rate: Term loan interest rates start at 7%. Your rate will depend on your business’s overall creditworthiness and financial health.
Loan Term: You can finance term loans with lengths and payment structures as varied as 1 year with weekly payments to 5 years with monthly payments. The longer the term, the lower the payments.
Example Using the Business Term Loan Calculator
Let’s say you wanted to see how much it would cost to take out a $40,000 business term loan over 3 years. You estimate you’ll be approved for an interest rate of 8%.
Inputting those figures into the business term loan calculator will give you a monthly payment of $1,253. If you took this monthly payment and extended it to 3 years, you could calculate a total cost with principal and interest of $45,108. This would mean you’d pay $5,108 in interest.
Alternatively, if you wanted to estimate your weekly payment, the result would be $292 a week, assuming a 3-year term, or 156 weeks.
Understanding Your Business Term Loan Calculator Results
We encourage you to explore several different “what if” scenarios as you run the numbers using our business term loan calculator. Adjust the loan amount, interest rate and term to see how much impact these factors have on repayment.
Like many, you may be drawn to a 60-month term instead of a 24-month term, as a longer term means you’ll pay less with each installment. On the downside, stretching out the loan means you’ll pay more in interest — effectively increasing your total cost of capital.
For this reason, it’s important to consider the big picture when using a term loan interest calculator and take all factors into account before closing on a loan agreement.
Also, consider other loan fees that may be involved that aren’t included in a business term loan calculator.
For instance, lenders commonly charge a one-time fee at funding, which can vary based on the term of the loan, approved rate or funding amount. Also, additional fees can apply for late or missed payments.
Related: Common Loan Fees to Expect When Securing Business Financing
Get Answers with a Business Term Loan Calculator
Whether you’re seeking a secured or unsecured term loan from a bank, credit union or alternative lender, we recommend starting your search with our small business term loan calculator. You’ll come away with a clearer understanding of what you can and cannot afford, what your loan payments might look like and how that will impact your operating cash flow.
If you have additional questions about financing or our business term loan calculator, talk with one of our Business Advisors. They’re ready to help you uncover your lending options, compare the terms, crunch the numbers and identify the best financing option for your unique needs.