SellstampBusiness loan calculator
Enter the amount, the annual interest rate and the term to see the monthly payment, the total you repay and the total interest on a standard amortising business loan.
Annual, nominal
Years
- Monthly payment
- 1,001.90
- Total interest
- 10,113.85
- Total repaid
- 60,113.85
Stays on your device
Everything runs in your browser. Nothing you type is sent anywhere unless you choose to email yourself the result.
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How to use it
- Enter the loan amount.
- Enter the annual interest rate as a percentage.
- Enter the term in years.
- Read the monthly payment, the total repaid and the total interest.
How the monthly payment is worked out
Standard amortisation: every payment is the same size, interest is charged on the balance still outstanding, and the balance reaches zero on the last payment. The formula is M = P · i ÷ (1 − (1 + i)−n), where P is the amount borrowed, i is the annual rate divided by twelve, and n is the number of monthly payments.
Because interest is charged on what is left, early payments are mostly interest and later ones are mostly principal, even though the payment itself never changes.
What a real offer will add
No fees are assumed here. Arrangement fees, broker commission, insurance and early-repayment charges are all outside this calculation, and an advertised APR includes several of them — so a real offer’s total cost is normally above the total interest shown above. A variable rate, a balloon payment or an interest-only period each change the shape entirely. Use this to compare offers, not to sign one.
Questions
How is a monthly loan payment calculated?
With the standard amortisation formula: payment = P × i ÷ (1 − (1 + i)^−n), where P is the amount borrowed, i is the annual rate divided by twelve and n is the number of monthly payments.
Why is most of an early payment interest?
Interest is charged on the balance you still owe, which is largest at the start. As the balance falls, the interest part of each identical payment shrinks and the part that repays the loan grows.
Does this include fees?
No. Arrangement fees, broker fees, insurance and early-repayment charges are all left out. A lender’s APR usually includes some of them, so a real offer normally costs more than the interest shown here.
What is the difference between APR and the interest rate?
The interest rate is the cost of borrowing the money itself. APR adds certain fees to express the yearly cost of the whole loan, which is why it is usually higher. This calculator uses the rate you type and nothing else.
What happens at 0% interest?
The payment is the amount divided by the number of months, and the total interest is zero.
Can I use this for a variable-rate loan?
Only as an estimate at today’s rate. A rate change alters every payment after it, and balloon or interest-only loans follow a different schedule altogether.
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