We encourage you to explore several different “what if” scenarios as you run the numbers using our business term loan calculator. Adjust the loan amount, interest rate and term to see how much impact these factors have on repayment.
Like many, you may be drawn to a 60-month term instead of a 24-month term, as a longer term means you’ll pay less with each installment. On the downside, stretching out the loan means you’ll pay more in interest — effectively increasing your total cost of capital.
For this reason, it’s important to consider the big picture when using a term loan interest calculator and take all factors into account before closing on a loan agreement.
Also, consider other loan fees that may be involved that aren’t included in a business term loan calculator.
For instance, lenders commonly charge a one-time fee at funding, which can vary based on the term of the loan, approved rate or funding amount. Also, additional fees can apply for late or missed payments.
Related: Common Loan Fees to Expect When Securing Business Financing