Three entries (amount, annual rate, months) produce three results: a level monthly payment, the interest over the whole term and the sum of every payment. The worked cases on this page use invented figures. A partner's offer sets the real terms.
A small business loan calculator run for a Lawrenceburg, TN convenience store's reach-in coolers
Refrigeration is central to a convenience store, and Lawrence County, TN had 12 grocery and convenience stores with paid employees in 2023, by the County Business Patterns count (NAICS 4451). Pricing a set of reach-in coolers is a good first run of the calculator on this page.
Illustration only, invented figures: say the coolers cost $18,640, the rate box holds 11.65 and the term box holds 36; the level payment is then $616.00. Thirty-six of those payments come to $22,176.00, which leaves $3,536.00 as the cost of borrowing. A store comparing that figure with its monthly card or cash deposits gets a first sense of fit before any partner is involved.
US dollars, annual percent and months: the three entries, tested on a Lawrence County, TN physician office's exam equipment
Each box expects one unit. The amount is in US dollars, the rate is the annual percentage from an offer or a guess, and the term is in months, not years. Picture one of the 17 offices of physicians with paid employees in Lawrence County, TN in 2023 (CBP, NAICS 6211) pricing exam tables and diagnostic equipment.
| Entry | Term box | Monthly payment |
|---|---|---|
| Correct: term in months | 60 | $697.50 |
| Mistake: years typed instead | 5 | $6,807.93 |
Illustration only, invented figures: put $33,250 in the amount box, 9.45 in the rate box and 60 in the term box, and the payment is $697.50; worked from that rounded payment, interest across the five years is $8,600.00. Typing 5 instead of 60 makes the calculator spread the amount over five months, so the payment comes out far too high. A result that looks many times larger than expected usually means years went into the months box.
Behind the result is the standard level-payment formula. The annual rate is divided by 12 to get a monthly rate, and the payment is set so that the last of the equal payments clears the balance exactly. Interest for the month comes out of each payment before anything goes to the balance.
Two terms side by side for a Lawrenceburg, TN quick-service restaurant's fryer and griddle package
Running the calculator twice with only the term changed shows the trade between a lower payment and more interest.
| Term | Monthly payment | Total interest |
|---|---|---|
| 30 months | $1,061.57 | $4,467.10 |
| 48 months | $721.69 | $7,261.12 |
In this invented example, the 48-month schedule for a quick-service restaurant's fryer and griddle package at $27,380 lowers the payment by $339.88 a month but adds $2,794.02 of interest. Equipment that will work for the full 48 months can justify the longer term; equipment expected to need replacing sooner points to the shorter one.
Small business term loan calculator results for a Lawrence County, TN auto repair shop's diagnostic scanner
A diagnostic scanner suits one of the 22 automotive repair and maintenance establishments with paid employees that operated in Lawrence County, TN in 2023 (CBP, NAICS 8111). It is a shop purchase that fits a short term loan.
Illustration only, invented figures: a $12,480 scanner priced at 13.2% a year and spread across 24 months means $594.50 each month; the 24 payments reach $14,268.00, and $1,788.00 of that is interest. The calculator shows the payment and totals; the split of each payment between interest and principal, worked by hand, looks like this for the first three months:
| Month | Interest | Principal | Balance after |
|---|---|---|---|
| Month 1 | $137.28 | $457.22 | $12,022.78 |
| Month 2 | $132.25 | $462.25 | $11,560.53 |
| Month 3 | $127.17 | $467.33 | $11,093.20 |
A term loan offer may add fees or set a different payment schedule; the calculator does not include either. For a cost that comes and goes, the line of credit page is the better starting point. The resources page works a reorder and a partner buyout by hand.
By Wrenway Funding ยท Updated
