Robinspring Capital, a small-business funding broker in Laramie, Wyoming, offers this free commercial loan calculator. Given an amount, an annual interest rate and a term in months, it returns the monthly payment, total interest and total repaid for a fixed-payment loan. Results are estimates from your inputs, not offers; lending partners set actual rates and terms.
The three inputs
- Amount: how much principal the loan would carry.
- Rate: the annual interest rate on the offer, as a percentage.
- Term: how many months you would repay over.
The calculator assumes a standard fixed-payment loan: equal monthly payments, interest charged on the falling balance, and no other charges. Use a real offer's figures when you have them; any rate you enter without one is only a placeholder.
The three results
Monthly payment is the sum debited every month. Total interest is the cost of borrowing across the whole term. Total repaid is the amount plus the total interest. Two offers with similar payments can have very different totals, which is why the last number matters most.
Same amount, two terms: a worked example
These inputs are invented to show the arithmetic. They are not a quote and do not describe what any partner offers.
| Term | Monthly payment | Total interest | Total repaid |
|---|---|---|---|
| 24 months | $1,356.82 | $2,563.65 | $32,563.65 |
| 48 months | $732.39 | $5,154.61 | $35,154.61 |
Doubling the term cuts the payment by almost half but roughly doubles the interest. Which is right depends on the business: the shorter term costs less overall, the longer one leaves more room in a lean month.
How is interest calculated on a business loan with fixed payments?
On a fixed-payment loan, each month's interest is the annual rate divided by twelve, times the balance still owed. Whatever is left of the payment pays down principal. Interest dominates the first payments; principal dominates the last. The calculator does this for every month of the term and adds it up.
Putting the result to work
Run the payment you see against your own bank statements. Take the leanest month in the last year, subtract the regular costs that month carried, and see whether the payment still fits with something to spare. If it only fits in a good month, try a longer term or a smaller amount, and note how much the total interest rises.
Write down the three results for each scenario you try. When a partner's offer arrives, enter its exact figures and compare the totals with your notes; a gap between the two is a question worth asking before you sign.
Limits of this commercial loan calculator
- It does not price merchant cash advances, which use a factor rate rather than interest.
- It does not include charges, prepayment terms or balloon payments.
- It does not handle credit lines, where the balance changes with each draw.
- It does not tell you what rate or amount a partner would offer.
For loan types, see business term loans and working capital; for the other guides, go to the resources page.
By Robinspring Capital ยท Updated