For informational purposes only. Not financial, investment, or tax advice. Results are estimates based on the inputs provided. Consult a qualified financial professional before making financial decisions.
Calculator tool
How this calculator works
Use the explanation to understand the formula, assumptions, and practical limits behind the calculator result.
What the Calculator Includes
The loan is modeled as a fixed-payment amortizing loan. The result combines:
- Monthly payment
- Total interest over the term
- Origination fee from the percentage you enter
- Total cost of borrowing
Why Fees Matter
A lower stated rate does not automatically mean a cheaper loan if fees are materially higher. The origination fee is charged upfront in economic terms even if it is deducted from proceeds or financed.
Payment vs Business Cash Flow
The monthly payment must fit the business cash cycle, not just the average annual profit. Seasonal businesses can appear affordable on paper and still struggle if collections arrive after payments are due.
What This Does Not Model
The calculator does not include collateral, variable rates, late fees, guarantees, balloon payments, taxes, changing revenue, or lender-specific underwriting. Use it to compare scenarios before requesting actual offers.
Frequently asked questions
Why include origination fee separately?
Because it changes the total financing cost even when the monthly payment formula is based on principal and rate. Ignoring fees can make two offers look more similar than they really are.
Is the lowest monthly payment always best for a business?
Not necessarily. A lower payment often comes from a longer term, which can raise total interest and keep the business indebted for longer.
What should I compare across loan offers?
Compare payment, APR or all-in cost, fees, term, collateral, prepayment rules, and whether the business can support the payment during weaker months.
Does this calculator decide whether my business qualifies?
No. Qualification depends on the lender, cash flow, credit, time in business, collateral, documents, and program rules.
