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Financing a camera, a laptop, a vehicle, or a stretch of working capital? Enter the amount, the rate, and the term to see the monthly payment, the total interest the loan really costs, and exactly what an extra payment each month would save. Every number is broken down so you can check it.
Where your first payment goes
Nothing you type leaves your browser. This is a planning estimate, not a loan offer or financial advice — your lender's actual quote, fees, and APR govern.
A normal business loan is fully amortizing: you pay the same fixed amount every month, and at the end of the term the balance is exactly zero. Each payment is split into two parts — the interest the lender charges on whatever you still owe that month, and the principal that actually pays the loan down. Early on, the balance is large, so most of the payment is interest; as the balance shrinks, more of each payment goes to principal. That's why the first-payment split above is so lopsided.
The formula looks intimidating but it's just the math that makes the payment land the balance at zero after n months. The calculator above runs it, then proves the result with a ledger: your principal plus the total interest equals the total you repay, which is also the monthly payment times the number of payments. If those two don't match, the number is wrong — so showing them is how you know it's right.
Borrow $25,000 for new gear at 9.5% APR over 5 years (60 payments). The monthly payment works out to $525.05. Over the full term you repay about $31,503 — roughly $6,503 of it interest. Your very first payment is $197.92 interest and only $327.13 principal; by the final payment that's almost entirely principal.
Because interest is charged on the remaining balance, any dollar you pay above the required amount goes straight to principal and stops accruing interest for the rest of the term. On that same $25,000 loan, paying just $100 extra a month clears the debt about 11 months early and saves more than $1,300 in interest. The longer the loan and the higher the rate, the bigger the saving — add an extra amount above to see your own. (Check whether your loan has a prepayment penalty first; most small-business and equipment loans don't, but some do.)
Debt isn't free, but neither is paying cash for a tool that earns you money. The honest test is whether the gear or working capital will generate more than the loan costs — which is exactly what the ROI calculator and break-even calculator are for. Run the monthly payment here, then make sure the work it unlocks comfortably covers it with room to spare. Keep the payment inside what a slow month could still afford, and size your emergency fund with the new obligation in mind.
From three numbers: the amount borrowed, the monthly interest rate (the annual rate divided by 12), and the number of monthly payments. The standard amortization formula — principal × i ÷ (1 − (1 + i)−n) — gives the single fixed payment that pays the loan off to exactly zero by the end of the term.
The interest rate is the cost of borrowing the principal. The APR (annual percentage rate) is meant to fold in certain fees too, so it's usually a touch higher. This tool treats the rate you enter as a nominal annual rate compounded monthly and does not add separate origination or processing fees — include those in your own comparison.
Yes, and often a lot. Interest is charged only on the balance you still owe, so every extra dollar of principal removes all the future interest that dollar would have generated. Add an extra monthly amount above and the tool shows how many months sooner the loan clears and how much interest you keep. Confirm your loan has no prepayment penalty first.
Because interest is calculated on the outstanding balance, which is largest at the start. Each month the balance falls a little, so the interest portion shrinks and the principal portion grows — the same fixed payment chips away faster and faster. The "where your first payment goes" breakdown above shows that split for payment one.
No. Every calculation runs entirely in your browser — nothing you type is sent to a server or stored. The link in your address bar updates so you can bookmark or share a scenario, but it only contains the numbers you entered.
Keep going
Will the thing you're financing actually pay for itself? Check the return and payback period.
How many projects it takes to cover your costs — now including a new loan payment.
Size the cash cushion that keeps a fixed loan payment safe through a slow month.