Business Loan Calculator

How does the tool turn a term in months into a number of payments?

The term is entered in months and converted with n = round(months ÷ 12 × payments per year), using 12 for monthly, 26 for biweekly and 52 for weekly. A 60-month loan therefore has 60, 130 or 260 payments, and a 13-month biweekly loan has 28. The rounding means the schedule can run a little shorter or longer than the exact term.

Which formula and rate convention does it use?

This tool uses payment = P × r ÷ (1 − (1 + r)^−n), with r equal to the annual rate divided by the payments per year (12, 26 or 52) and payments made at the end of each period. Dividing by 26 or 52 is a nominal-rate convention. Some business lenders instead quote a factor rate, use a daily or actual-day basis, or collect fixed daily or weekly sums, and the result would differ.

Why is total interest lower with weekly payments?

In this model the balance is reduced more often and interest is charged on a smaller balance each period, so the total falls slightly. On $50,000 at 7.5% over 60 months, monthly payments cost $10,113.85 of interest, biweekly $10,030.81 and weekly $9,995.20. It is not an accelerated schedule: a biweekly payment here is not half a monthly payment.

What happens at 0% interest or a term of 0?

At exactly 0% the payment is the amount divided by the number of payments, with $0.00 interest, so $20,000 over 10 months paid biweekly is 22 payments of $909.09. A loan amount of 0 or a term that rounds to no payments shows n/a rather than a division error.

Are origination fees, guarantees or other charges included?

No. Arrangement fees, broker fees, personal guarantee costs, valuation charges, late fees and early-repayment penalties are all missing, and the full loan amount is treated as received. A fee deducted from the proceeds raises the real cost of borrowing above what the tool shows.

Does the tool cover balloon payments, interest-only periods or lines of credit?

No. Every payment is equal, the rate is fixed and the balance reaches zero at the end. Revolving credit, seasonal repayment, balloon structures, variable rates and revenue-based repayments need a different model.

What do the first-payment lines show?

First-payment interest is the starting amount × the periodic rate, and first-payment principal is the payment minus that interest. For the default loan the monthly figures are $312.50 interest and $689.40 principal. No later row or running balance is displayed.

Can I rely on the example rates?

Treat them as inputs for illustration only. Real business-loan rates, fees and eligibility rules change and differ between lenders, and the lender’s agreement governs the amounts you owe.