Business Loan Calculator

At a nominal rate of 8% per year with monthly payments, the payment is $2,027.64 per month, total interest paid is $21,658.37, and the total cost is $121,658.37 over 60 months.

Payments are calculated as if the term were long (e.g. a 10-year amortization), then on the balloon date (e.g. the end of year 5) the remaining principal is paid in full at once. Example: a $100,000 loan at 8% with a 10-year amortization gives monthly payments of $1,213.28, a balloon balance of $59,836.87 at the end of year 5, with $32,633.43 in interest paid by that point.

Nominal APR is the rate stated in the contract, while effective APR accounts for upfront costs such as origination fees. Example: a $100,000 loan at 8% nominal for 5 years with a 2% origination fee ($2,000, net funds received $98,000) has an effective APR of 8.86% per year.

Divide monthly cash flow by the DSCR ratio (usually 1.25×) to get the maximum payment, then compute the present value of that annuity. Example: $5,000 monthly cash flow with a 1.25 DSCR gives a maximum payment of $4,000 per month, equivalent to a maximum loan of $197,273.73 at 8% for 5 years.

No. This calculator gives educational estimates based on standard annuity formulas; actual figures may differ due to fees, taxes, and bank terms. Consult a licensed financial advisor for borrowing decisions.