Business Loan Calculator
Estimate periodic payment, balloon balance, fees, effective annual rate, total interest, and debt-service coverage.
How the business-loan payment is calculated
The calculator discounts the balloon payment back to the start of the loan and amortizes the remaining present value with equal periodic payments. With no balloon, it becomes a standard fully amortizing loan.
P is financed principal, B is the maturity balloon, r is the periodic rate, and n is the number of payments.
Balloon payment
A balloon reduces regular payments but leaves a large amount due at maturity. The balloon is included in total payments, interest, effective annual rate, and the final amortization row. It is not included in regular annual debt service because it is a separate maturity obligation.
Debt-service coverage ratio
DSCR divides annual cash flow available for debt service by regular annual loan payments. The target comparison is only a planning screen. Lenders define eligible cash flow, add-backs, existing debt, and acceptable coverage differently.
Origination fees and effective rate
A deducted or separately paid fee reduces net cash available without reducing the contractual principal. A financed fee increases the balance. The effective annual rate estimate uses net cash, every scheduled payment, payment frequency, and the balloon.
Example
A $100,000 loan at 10% for five years with monthly payments and no balloon has a payment of about $2,125. A balloon lowers the regular payment but increases the amount that must be refinanced or paid at maturity.
Important limits
The estimate assumes a fixed nominal rate, equal payment intervals, payments made on time, and a single balloon at maturity. It excludes variable rates, lender-specific daily accrual, guarantees, collateral valuation, closing costs not entered, taxes, prepayment charges, covenants, existing debt, and legal or accounting effects. Weekly and biweekly periods are mathematical equal intervals rather than calendar-date schedules.
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