Three inputs drive it: amount, rate (annual %) and months. It hands back three numbers: what each month costs, what interest comes to over the term, and the grand total. It leaves out fees, interest-only months and balloons, and a partner's offer can differ.
Using the term loan calculator on a walk-in freezer for a Cumberland, MD quick-service restaurant
Picture a quick-service restaurant pricing a walk-in freezer unit, with an invented quote of $16,300; the electrical and refrigeration line work stays outside this site as property work. In the boxes, that is 16300 for the amount, 10.6 for the rate and 48 for the months. Out come three results: a monthly payment, the interest over the whole term and everything paid back.
Illustration only, invented figures: at those inputs the payment rounds to $418.12 a month. Worked from that rounded payment, 48 installments total $20,069.76 and the interest is $3,769.76. The calculator computes its totals from the unrounded payment, so they can differ from these by a few cents.
Of the 57 limited-service restaurant employer establishments in Allegany County, MD in 2023, 10 had fewer than five employees (County Business Patterns, NAICS 722513).
How the rate changes a term loan: one Cumberland, MD home builder's equipment cost at three rates
The rate is the input worth testing. Holding the amount and term steady shows how much of the cost is the rate itself. Illustration only, invented figures: a home builder finances $29,800 of equipment, such as laser levels, a survey total station and framing nailers, over 60 months at three rates:
| Rate (annual %) | Monthly payment | Total of 60 payments | Interest |
|---|---|---|---|
| 8.9% | $617.15 | $37,029.00 | $7,229.00 |
| 10.9% | $646.44 | $38,786.40 | $8,986.40 |
| 12.9% | $676.52 | $40,591.20 | $10,791.20 |
Four points of rate, 8.9% against 12.9%, cost this builder $59.37 more every month and $3,562.20 more interest by the final payment. Construction had 97 employer establishments in Allegany County, MD in 2023, and 57.7% of them had fewer than five employees (County Business Patterns, NAICS 23).
Bank-style term loan calculator math, checked by hand for an Allegany County, MD physician office's patient monitors
The calculator uses the standard level-payment (amortization) formula: payment = amount x r / (1 - (1 + r)^-n), where r is the annual rate divided by 12 and n is the number of months.
Illustration only, invented figures: patient monitors for a physician office cost $41,250, financed at 9.45% over 72 months. Here r = 0.0945 / 12 = 0.007875 and n = 72, so the payment works out to $752.80. In month one, interest is $41,250 x 0.007875 = $324.84, which leaves $427.96 of the first payment for principal.
| Month | Interest | Principal | Balance after |
|---|---|---|---|
| 1 | $324.84 | $427.96 | $40,822.04 |
| 2 | $321.47 | $431.33 | $40,390.71 |
| 3 | $318.08 | $434.72 | $39,955.99 |
Across all 72 payments the office pays $54,201.60, of which $12,951.60 is interest.
Term loan yield vs payment: what this calculator shows an Allegany County, MD auto repair shop
A term loan yield calculator answers the funding partner's question: what does the loan earn? The calculator on this page answers the business's question: what does the loan cost each month and in total? It does not compute yield, fees or an annual percentage rate.
For an auto repair shop financing a tire changer and a wheel balancer, the useful outputs are the payment, to set beside monthly deposits, and the total interest, to set beside paying cash. Two quotes can be run one after the other and their totals compared.
Two input slips change the result most. Entering the term in years instead of months makes the payment far too high; entering the rate as a decimal, such as 0.105 instead of 10.5, makes it far too low. A records checklist and the sources behind the site’s figures are on the resources page.
By Ledgewater Lending · Updated
