This working capital loan repayment calculator takes an amount, an annual rate and a term in months and returns the monthly payment, the total interest and the total repaid on a standard amortizing loan. Elmline Commercial Capital, a small-business funding broker in Longview, TX, provides it as illustrative arithmetic only, not an offer or an estimate of terms.
How to use it
- Amount: the sum you would receive, or the amount financed in the offer.
- Interest rate: the yearly percentage rate quoted in the offer.
- Term: the number of months over which the loan is repaid.
The calculator assumes equal monthly payments on a standard amortizing loan. It returns the monthly payment, the total interest over the term and the total repaid.
Weekly or daily payment offers
Many short-term working capital offers are repaid weekly or daily rather than monthly, and some state a total cost rather than an annual rate. The calculator works in months only. For a weekly or daily schedule, compare by hand instead: multiply the payment by the number of payments to get the total repaid, then subtract the amount you actually receive to get the total cost. Set that total against the calculator's total interest for a monthly loan of the same amount and term.
A check with no interest
Purely to test the method: a hypothetical $6,000 with zero interest over 12 months gives a $500 monthly payment, no interest and $6,000 repaid. Add any rate and the payment, total interest and total repaid all rise. That is arithmetic for checking the tool, not an offer.
When an offer will not match the result
- Fees deducted from the proceeds reduce what you actually receive, so the true cost is higher than the rate alone suggests.
- Some lenders calculate interest daily or on a 360-day year.
- If the first payment falls more or less than a month after funding, the schedule moves.
- Variable rates change the payment over time.
Illustrative arithmetic only. Real rates and terms are set by lending partners.
Using the result
Put the monthly payment next to your slowest month's cash, not your average month's. If the payment only works in a good month, the loan is too large or the term too short. Then compare the result with the structures described on working capital financing and business lines of credit, and see the guide library for more.
By Elmline Commercial Capital · Updated