Coralpoint Commercial Capital, a small-business funding service in Titusville, FL, offers this loan payment calculator for Brevard County, FL contractors. Type in a loan amount, an annual rate and a term in months to see the monthly payment, total interest and total repaid. It is a planning tool; partners set actual rates and terms.
What this commercial loan payment calculator does
It is a standard small business term loan calculator. You enter three numbers: the amount borrowed, an annual interest rate and the term in months. Out come three figures: the monthly payment, interest across the whole term and the total paid back. It assumes equal monthly payments and a fixed rate.
Limits of this payment tool
It does not show an amortization schedule, include fees, model a line of credit or a merchant cash advance, or estimate what any partner would offer. It does not know your credit or your business. Use it to test whether a payment fits your cash flow.
If you want a business loan amortization schedule, the method by hand is below.
A worked example, using a rate you type in
Suppose a contractor enters $42,000 over 48 months at an annual rate of 11.5 percent. The calculator returns a monthly payment of about $1,095.74, total repaid of about $52,595.44 and total interest of about $10,595.44. These inputs are made up for illustration; they are not a quote, a typical rate or an amount any partner has offered.
Building the amortization schedule by hand
- Divide the annual rate by 12 to get the monthly rate.
- For month one, multiply the balance by the monthly rate: that is the interest part of the payment.
- Subtract the interest from the monthly payment: the rest reduces the balance.
- Repeat with the new balance each month. Interest shrinks and principal grows as the balance falls.
In the example, month one's interest is about $402.50, so about $693.24 of the first payment reduces the balance.
Using the result in a construction business
Compare the payment with the cash a job or machine will bring in each month. If a skid steer adds billable work, its payment should sit comfortably inside that revenue. If the need is materials and payroll between draws, a term loan may be the wrong tool; a line of credit drawn per job may fit better, so compare the total dollar cost of each. The contractors and builders page explains both routes.
Related pages
See the equipment financing page for machine purchases and the guides page for permits and local help.
By Coralpoint Commercial Capital · Updated