This term loan repayment calculator from Rainhaven Business Funding, a small-business funding broker in Columbia, Tennessee, turns an amount, an annual interest rate and a term in months into a monthly payment, total interest and total repaid. The output is arithmetic on your own inputs rather than an offer, since lending partners alone decide and set rates and terms.
What to type in
- Amount: the principal you would borrow, for example a build-out bid minus what you will pay in cash.
- Annual interest rate: the rate on a quote you have, or one you want to test.
- Term in months: how many monthly payments, for example 60 for five years.
The calculator assumes equal monthly payments and interest charged on the falling balance, the standard amortizing structure for a business term loan.
How interest is calculated on a commercial term loan
Each month, interest is the remaining balance times the monthly rate (the annual rate divided by twelve). The rest of the payment reduces the balance, so next month's interest is a little smaller and the principal portion a little larger. That is why total interest rises sharply with the term: a longer schedule keeps a larger balance outstanding for longer.
A quick check of the arithmetic
A deliberately simple case, not typical of any offer: $2,400 at a 0 percent rate over 24 months gives a $100 monthly payment, zero interest and $2,400 repaid. Enter any positive rate and both the payment and the total repaid rise.
Steps to finish by hand
- Fees. If an origination or other fee is deducted from the amount you receive, add it to total interest yourself for the true cost.
- Balloon payments. The calculator assumes the loan is fully paid by the last month; a balloon needs its own calculation.
- Early payoff. Whether paying early saves interest depends on the agreement; the calculator cannot tell.
- Weekly or daily debits. Only monthly payments are modeled; other schedules need their own figures.
- Leases and advances. A lease buyout or a merchant cash advance's factor rate are not loan inputs, and an advance is not a loan.
Where term loans come up locally
Maury County's 230 construction employers and 195 food service and drinking places (U.S. Census Bureau, County Business Patterns 2023) are the businesses most likely to finance build-outs, renovations and larger equipment packages with a term loan. Contractor financing explains how trades use term loans alongside lines of credit, and the term loan page covers amortization, prepayment and collateral.
Treat every result as illustration, not a quote. Lending partners alone set actual rates and terms. Other guides: the full resources list.
By Rainhaven Business Funding ยท Updated