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Finance

Loan Calculator

Calculate the monthly payment, total interest and total cost of any fixed-rate loan.

Your numbers

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Result

Monthly payment $923.24
Total interest $10,395
Total repaid $55,395
Number of payments 60
Borrowing 45,000 at 8.5% over 5 years costs $923.24 a month and $10,395 in total interest.

This is a standard amortising loan with equal payments and no fees. Origination fees, insurance or balloon payments change the real cost: the APR calculator accounts for fees.

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Questions

About this calculator

Why does a longer term cost so much more?

A longer term lowers the payment but the balance sits outstanding for longer, so interest accrues on more of it for more months. Halving the payment by doubling the term usually more than doubles the interest.

Should I borrow for equipment or pay cash?

Compare the total interest here against what the same cash would earn deployed in the business. A van that lets you run another crew often outperforms the interest cost. A nice-to-have upgrade rarely does.

What does the interest rate not include?

Fees. A loan with a low rate and heavy origination fees can be more expensive than a higher-rate loan with none, which is what APR exists to reveal.

The formula

payment = P × i ÷ (1 − (1 + i)^−n), where i is the monthly rate and n the number of payments

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Numbers are only half the job

Good margins still need customers finding you and systems that hold it together. BDEVY covers the marketing, technology and automation side.