Business Loan Calculator
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This calculator is designed to assist you in understanding the potential costs and repayment details of a business loan. It’s a useful tool to help guide you in the funding process and plan your financial strategy.
Please note: The results are estimates based on the information you provide and do not guarantee approval or final loan terms. For personalized assistance, feel free to contact us.
Instructions for Using the Business Loan Calculator
How to Fill Out the Form
Loan Amount ($):
Enter the total amount of the loan you’re considering.
Example: If you are looking to borrow $50,000, type 50000.
Interest Rate (%):
Enter the annual interest rate for the loan.
Example: For an interest rate of 6%, type 6.
Loan Term (Years):
Enter the number of years you’ll take to repay the loan.
Example: For a 5-year loan, type 5.
Origination Fee (% of Loan Amount):
Enter the origination fee charged by the lender as a percentage of the loan amount.
Example: For a 2% origination fee, type 2.
Documentation Fees ($):
Enter any additional fees associated with the loan application process.
Example: If the documentation fee is $100, type 100.
Other Fees ($):
Enter any other applicable fees (e.g., service charges, administrative fees).
Example: If there is a $200 fee, type 200.
Click "Calculate":
After filling in all fields, click the "Calculate" button to view the loan details.
Explanation of the Results
Loan Principal
What it Means
The actual amount being financed (the figure on which interest is charged). It excludes any fees you pay at closing.
Monthly Payment
What it Means
The fixed amount you’ll pay each month to amortize the loan over the chosen term.
Why It’s Important
Lets you gauge monthly cash-flow impact and be sure the payment fits your budget.
Total Number of Payments
What it Means
How many payments you’ll make over the life of the loan (e.g., 240 for a 20-year term).
Total Interest Paid
What it Means
The cumulative interest you’ll pay over the entire term.
Why It’s Important
Reveals the cost of borrowing beyond the principal.
Origination Fee
What it Means
The lender’s one-time fee for setting up the loan, shown both as a dollar amount and its equivalent % of the loan.
Why It’s Important
Paid at closing—reduces the cash you receive and is not amortized, so it doesn’t earn interest but affects net proceeds.
Documentation Fees
What it Means
Lender fees for processing, underwriting, and finalizing your loan (appraisal, credit, legal, etc.).
Why It’s Important
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If financed, they increase the principal and accrue interest.
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If paid up-front (as modeled here), they raise closing costs but do not accrue interest.
Other Fees
What it Means
Third-party closing costs (title, recording, courier, legal services, etc.) paid in cash to outside vendors.
Why It’s Important
Must be covered at closing and are not financed, so they do not accrue interest—be sure you have cash on hand.
Tips for Interpreting the Results
Use the Monthly Payment result to determine if the loan fits your budget.
Compare the Total Interest Paid across different loan options to find the most cost-effective choice.
Review the Total Loan Amount (Including Fees) to understand how upfront fees affect the overall cost of borrowing.
This calculator is a valuable tool for estimating loan costs, but always consult with your lender or financial advisor for precise details specific to your situation.
Disclaimer: This calculator is for informational purposes only and should not be considered financial or legal advice. The results are estimates based on the data provided and may differ from actual loan terms or offers. We recommend consulting with a financial advisor or lender for accurate information specific to your situation.