This term loan payment calculator takes an amount, an annual interest rate and a term in months and returns the monthly payment, total interest and total repaid for a fixed-rate, fully amortizing loan. Halespring Business Capital, a small-business funding broker in Gastonia, North Carolina, provides it as illustrative arithmetic only, not an offer or estimate of terms.
What to enter
- Amount: the sum you would actually receive and repay. If fees are deducted from the proceeds, see the note below.
- Interest rate: the annual note rate stated in the offer, as a percentage.
- Term: the number of monthly payments.
What the three results mean
- Monthly payment: the fixed payment that pays the loan off exactly over the term at that rate.
- Total interest: all interest paid over the term, which is the total repaid minus the amount.
- Total repaid: the monthly payment multiplied by the number of payments.
The calculator assumes a fixed rate, equal monthly payments and no balloon. It does not add fees or change the schedule.
The formula behind it
Call the amount P, the number of monthly payments n, and the monthly rate r, which is the annual rate as a decimal divided by 12:
Payment = P × r ÷ (1 − (1 + r)−n)
At a zero rate the formula reduces to P ÷ n. As a check of the method only, a hypothetical $9,000 at zero interest over 36 months gives $250 a month and no interest. Any real rate makes the payment higher than that simple split.
Steps the calculator does not do, by hand
- Fees. If an origination fee is taken from the proceeds, you receive less than the amount you repay. Enter the full amount to get the payment, then add the fee to the total interest to see the full cost of the money you actually receive.
- Weekly or daily payments. The calculator works in months. For an offer with weekly debits, take the weekly payment from the contract and multiply by the number of payments to get the total repaid, then compare that total with this calculator's result for a monthly loan.
- Balloons. If the offer ends with a balloon, the regular payment here will not match; ask the partner for the amortization schedule.
- Variable rates. The result holds only while the rate stays the same.
Comparing two offers
Run each offer separately with its own amount, rate and term, then compare the total repaid and the monthly payment side by side. A longer term lowers the payment but raises total interest; a shorter term does the reverse. Decide which payment the business can carry in a slow month, then choose the lowest total cost among the offers that meet it.
These figures illustrate arithmetic; real rates and terms come only from lending partners.
After the numbers
The term loan page covers balloons, covenants and early payoff. The rest of our Gaston County guides are under resources.
By Halespring Business Capital · Updated
