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Business Loan Calculator

Calculate payment amounts, total interest costs, and create an amortization schedule for your business loans.

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Fill in the form and click "Calculate" to see your loan payment details

Understanding Business Loans

Business loans provide capital for business operations, growth initiatives, equipment purchases, or other business needs. Understanding the total cost of the loan beyond just the principal amount is crucial for making informed financial decisions.

Key Terms:

  • Principal: The original amount borrowed
  • Interest Rate: The percentage charged by the lender for borrowing money, usually expressed as an annual percentage rate (APR)
  • Loan Term: The length of time to repay the loan
  • Amortization: The process of paying off debt with regular, fixed payments that cover both principal and interest

Types of Business Loans:

  • Term Loans: Traditional loans with fixed or variable interest rates and set repayment schedules
  • SBA Loans: Loans guaranteed by the Small Business Administration, often with more favorable terms
  • Equipment Loans: Loans specifically for purchasing business equipment
  • Lines of Credit: Flexible borrowing options that allow you to draw funds as needed

Business Tip

When evaluating loan options, consider not just the monthly payment but also the total cost of the loan over its lifetime. A slightly higher interest rate with a shorter term may result in less total interest paid.

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