Commercial loan calculator

From three numbers: the amount, the monthly rate and the number of months. The payment is the amount multiplied by the monthly rate and by (1 + rate) raised to the number of months, divided by that same power less one. On $250,000 over 10 years at 7.5% it comes to $2,968 a month, of which $106,105 is interest across the whole term.

Yes, and more than most people expect, because interest is charged on what is still owed. The same $250,000 at 7.5% over 5 years costs $5,009 a month, which is higher, but the total interest falls from $106,105 to $50,569. The trade is cash flow now against cost overall.

A lump still owed when the term ends, common on commercial property and equipment finance. It lowers the monthly payment because less of the loan is being repaid along the way, but it does not lower the cost: you either find that sum or refinance it, usually at whatever rate exists on the day. This calculator discounts the balloon to present value before spreading the rest, which is the correct treatment and gives a slightly higher payment than the shortcut of subtracting it outright.

Because it includes the origination fee and measures the cost against the money you actually receive, not the money you nominally borrow. A fee taken out at the start means you borrow less than the headline figure while paying interest on all of it. It is a plain cost of credit, not a regulated APR, which follows a prescribed method and can include charges this page knows nothing about.

Business loan interest is generally deductible as a business expense, while the principal repayment is not, because repaying borrowed money is not a cost. The rules have limits and exceptions, particularly on interest above a share of income, so this is a question for your accountant rather than a calculator.