Free Business Loan Calculator
Use our free business loan calculator to understand exactly how much you can expect to pay every month. These repayments should be made from your earnings before interest. If you don’t know how to calculate that, check out our EBITDA calculator. The calculator below will give you an accurate estimate of the repayment plan of your monthly loan and the amortization schedule.
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Repayment Plan
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Determine the average value of each order placed in your business. Compare this value across different periods to track growth and identify opportunities to increase your AOV.
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Use this calculator to gain insight into your business’s profitability by focusing on your gross profit, excluding marketing and operational costs.
Calculate your earnings before interest, taxes, depreciation, and amortization to understand your business’s financial performance before accounting for obligatory expenses.
Also known as net profit, this calculator shows you whether your business is losing money or generating a profit for the period.
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Calculate your earnings before interest, taxes, depreciation, and amortization to understand your business’s financial performance before accounting for obligatory expenses.
Use this calculator to compare your assets to your debt. A strong debt-to-assets ratio can indicate favorable lending terms from creditors.
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Calculate how many units you need to sell at a particular price to cover your fixed and variable costs, allowing you to find your break-even point.
Understand the future impact of a financial decision made today by calculating the time value of money in your business.
If you know an asset's future value and its expected rate of return, this calculator can determine its current value.
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Easily calculate percentage gain, loss, or other variations by entering your values and letting the calculator do the rest.
Use this calculator to visualize how your loan payments (and potential extra payments) will impact both interest and principal over time.
Explore the power of compound interest. This calculator allows you to run different scenarios for your business, showcasing how compound interest can benefit you over time.
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What you need to know about business loans
Getting a business loan can be a great way to help your company grow, but there are some important things to keep in mind before diving in. Whether you’re looking to expand, invest in new equipment, or manage cash flow, here’s what you need to know to make smart borrowing decisions.
Interest Rates and Fees
You’ll want to pay close attention to the interest rates and fees attached to any loan you’re considering. These costs can vary depending on the type of loan, your credit score, and the lender. Some loans might look appealing upfront but could come with higher fees or variable interest rates that increase over time. Always read the fine print to avoid any surprises.
Collateral and Creditworthiness
Many business loans require collateral—something of value like equipment or property that the lender can seize if you can’t repay the loan. Your business’s credit score and financial history will also play a big role in what loans you qualify for and what interest rates you’ll get. A strong credit profile can open doors to better loan terms, so it’s worth working on if your score needs improvement.
Repayment Terms
Be sure to understand the repayment terms before signing on the dotted line. Some loans are paid back over a few months, while others stretch out for years. It’s important to make sure the repayment schedule aligns with your cash flow so you don’t end up struggling to make payments.
Purpose of the Loan
Finally, have a clear idea of how you’ll use the loan. Lenders will want to know your plan, and having a well-thought-out strategy can improve your chances of approval. Plus, knowing exactly how the funds will help your business ensures you’re borrowing for the right reasons and can maximize the loan’s value.
Major types of business loans
These days, there are more and more types of loans you can take. Some, like revenue-based financing, will tell you that it’s not a loan.
Whatever the case, understanding the various types of business loans is crucial when seeking financing to grow your business.
Each type of loan is suited for specific needs, and knowing which is best for your business can help you secure the right funding. Below are the major types of business loans:
1. Term Loans
A term loan is one of the most common types of business financing. It involves borrowing a lump sum and repaying it over a set period with interest. Term loans are typically used for major investments like expanding operations, purchasing equipment, or refinancing existing debt. They can be short-term (up to 1 year) or long-term (up to 25 years), depending on the business's needs.
2. SBA Loans
Small Business Administration (SBA) loans are government-backed loans aimed at helping small businesses. The SBA does not lend money directly but guarantees a portion of loans issued by approved lenders. SBA loans offer low interest rates and longer repayment terms, making them attractive for businesses that may not qualify for conventional loans. They are typically used for working capital, purchasing real estate, or refinancing debt.
3. Business Line of Credit
A business line of credit gives you access to a flexible pool of funds that you can draw from as needed. It works similarly to a credit card, where you only pay interest on the amount borrowed. Lines of credit are ideal for managing short-term cash flow needs, covering emergency expenses, or handling seasonal fluctuations in revenue.
4. Equipment Financing
This type of loan is specifically designed to help businesses purchase equipment. The equipment itself often serves as collateral, making it easier to qualify for. Equipment financing is useful for businesses in industries like construction, manufacturing, or transportation that require large machinery or technology upgrades.
5. Invoice Financing
Also known as accounts receivable financing, invoice financing allows businesses to borrow against their unpaid invoices. This type of loan is ideal for businesses with long payment cycles that need quick access to cash. It helps maintain cash flow without waiting for customers to settle their invoices.
6. Merchant Cash Advances
A merchant cash advance provides a lump sum upfront in exchange for a percentage of future sales. It is repaid through daily or weekly deductions from your revenue. While convenient for businesses with fluctuating sales, it often comes with high fees and is best for short-term needs.
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