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Use our term loan calculator to estimate your monthly payment and origination fee. Input the amount you are seeking, desired term length, and factor rate to see how your payment changes.
How a Term Loan Calculator Can Help You
When a business owner applies for a term loan, sometimes the numbers aren’t always clear, which can make it difficult to understand. How do you calculate term loan payments? What is a term loan? What does it cost? What are the interest rates? How a term loan affects your credit? On this page, we’ll answer the financial questions borrowers have, so you can rest assured you’ll know the numbers.
How a Term Loan Works
Most business owners have heard, that term loans are one of the best products for small business owners who want to expand. Funds from a business term loan can be used in a multitude of ways to help a small business grow.
Term loans are viable options for established businesses that are showing a profit on their most recent business tax return. No two businesses are alike and all business owners have specific capital needs. Upwise funding specialists will be able to qualify your business for a term loan very quickly.
How to Calculate the Cost of Your Business Term Loan
Input Your Loan Details
- Enter the loan amount you are seeking, annual rate, and term in months
- The loan calculator will provide your estimated monthly payment
- Keep in mind, the rate, term, and cost will be determined by what your business qualifies for
Calculate Your Payments
- Estimate your monthly payment, based on the loan details you’ve entered or were quoted.
- Also, your business may qualify for a weekly or bi-weekly payment option, if you prefer that over monthly
Find Your Total Fees
- Calculate your estimated origination fee
- Every term loan will have an origination fee, typically between 2-5% of the loan amount. The loan calculator with payments will show you what you will pay in origination fees.
Loan Calculator Help
Many merchants find it difficult to find out if they are getting the best deal on a term loan. If you fall into this category, our loan calculators will give you all the information you need to make an educated decision.
This calculator can be used to determine the estimated dollar amount of your monthly repayment. It can also provide information about the annual rate, and the origination fee of your loan.
Term Loan – Calculator Terms
- Amount Seeking: The amount you are seeking or have received from the term loan lender. This number is expressed as a dollar amount.
- Annual Rate: The multiplier used to determine the interest you’ll pay for the loan. Use the slider to choose the annual rate you’ve been provided. Similar to APR interest rates, but calculated as a fixed fee.
- Term: The term is the period of time in months, you will have to pay back the advance. Most cash advances range anywhere from 1 to 18 month period.
- Estimated Monthly Payments: This is approximately the amount you will have to pay per month, if you choose a monthly payment option, instead of a daily or weekly payment.
- Origination Fee: This is the fee that a lender or bank will charge at the closing of your loan. It’s deducted from the loan amount and in most cases, is calculated as a percentage
How to Apply for a Term Loan
Apply online in just a few minutes or call us directly to apply over the phone, its your choice and we like to hear from you. Call us today at (646) 837-5522
Our system evaluates your business and typically provides a decision within hours. Approvals for certain products may take up to 24-48 hours.
Sign your contract, submit closing documents and you'll receive the funds into your account via wire transfer or ACH. Available as soon as same day.
Inquire Now to Compare Term Loan Rates
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What is a Term Loan?
A traditional business term loan is a lump sum of capital that you pay back with regular repayments at fixed interest rates over a term typically between one to five years. The “term” in “term loan” comes from its set repayment term length or when the loan goes to maturity. Borrowers often use the proceeds to finance a specific, one-off investment for their small business.
Since they have lower interest rates and come in at a lower cost of capital over a longer-term, many clients utilize them to refinance high-interest debt. As long as the borrower’s credit and Debt-Coverage-Service-Ratio meet the minimum requirements, Upwise will be able to secure a term loan for your business.
What is the Term Loan Origination Fee?
The origination fee is the cost lenders or a bank will charge borrowers for originating their loan. This typically includes the cost of underwriting, administration fees, ACH or wire fees, etc. You should know the fees you will have to pay relating to the term loan. Typically, the cost is around 2-5% of the total loan amount. Use our loan calculators origination fee section to estimate this fee amount. It’s important to consider these fees when calculating your total amount for the loan.
The Best Term Loan Rates
to Boost your Success
Compare multiple term loan offers and rates when you apply with us. It only takes a few minutes to apply, and Upwise will present you with options.
How a Term Loan Affects Your Credit?
Term Loans can affect personal or business credit ratings, however, in some cases, they do not. To a short-term or merchant cash advance lender, they may not consider your loan debt. Which is a good thing! When lenders issue money, during the repayment period – they will report your payments to the credit bureaus. If you’re making all your payments on time, this can help to increase your credit score. On the other hand, if you fall behind on payments or default – this could negatively impact your credit score.
Alternatives to a Term loan
If you’re an established business with a good credit score, it’s worth investigating other financing products and services. At Upwise, we offer and have access to over 20+ loans for borrowing money to grow your business. Each option has its advantages and disadvantages, which may have a daily, weekly, bi-weekly, or monthly payment option. Read more below on other financial loans available to small businesses. Please reach out to request an application.
Term Loan Tips
- Check Your Credit & Improve it if need be
- Know Your Monthly Expenses
- Determine A Budget
- Compare Multiple Lenders or Banks
- Know The Term Loan Fee & Cost
- Ask About Early Payoff Discounts
- Keep Your Bank Account Balances Positive Through the Closing Process
Term Loans Vs Short Term Loans
A business term loan may have a similar APR or annual percentage rate to a short-term loan or working capital loan. However, it is usually a lower loan amount & interest rate. The main difference between the two is the loan term. The loan term refers to the period of time in which you’ll have to repay the loan. When considering your lender, be sure to ask for an amortization schedule. An amortization schedule will break down all the payments over the course of your loan.
Term Loans Vs Personal Loans
The main difference between a term loan and a personal loan is that loans personal are issued to an individual and term loans are issued to a business. A personal loan is meant for different purposes, whereas term loans meant for small businesses, are to meet their working capital needs and other similar requirements.
Term Loans Vs Credit Cards
A credit card may have a similar APR or annual percentage rate to a term loan. If you have great credit, you may be able to find a card issuer who offers 0% intro APR or low credit card interest. Also, if your business is not established enough to qualify for financing, you may also consider personal loans or a payday company (just keep in mind, these are usually high interest). Additionally, utilizing a credit card can have its benefits. For example, if you want to increase your poor credit score, or earn rewards like cash back or sign up bonus rewards, then a credit card might be a good option for you.