Using the Business Loan Calculator
Try a slower-sales scenario before choosing a payment you can afford only in a strong month. The calculator measures debt payments; it does not forecast cash receipts, operating profit or the timing of customer invoices.
Worked example
Use the example inputs below to reproduce this result. These are the form's starting values, not recommended targets. Changing your inputs updates your result above; this worked example stays fixed for comparison. Results are rounded for display.
Example inputs
- Amount borrowed
- 20000
- Annual interest rate (%)
- 6
- Term (months)
- 60
Example result
- Monthly payment
- 386.66
- Total payments
- 23,199.36
- Total interest
- 3,199.36
Method and assumptions
Fully amortizing loan with equal end-of-month payments, monthly interest and no fees, taxes, insurance or variable-rate changes. All amounts use the same currency.
Compare the whole borrowing commitment
When comparing loan scenarios, change one assumption at a time. First compare terms at the same rate and balance, then compare rates over the same term. This makes it easier to see why the monthly payment changes. Keep any upfront costs alongside the result so that a lower installment does not hide a more expensive agreement.
Common question
Can I use this for a merchant cash advance?
Not directly. Repayments linked to daily sales and factor-rate pricing need a different cash-flow model. This tool assumes a fixed balance, annual interest rate and monthly repayment schedule.
Guide updated .