Loan calculator

When you’re looking for debt financing, there are many different types of lenders to turn to. While you don’t necessarily need to know the nuances of financing, it helps to know your specific needs so your lender can direct you accordingly. Our loan calculator will help you determine your estimated payments for different loan amounts, interest rates, and terms.

See a sample here

Unfortunately, this tool is not available in your region

Our Loan calculator is currently available for US residents only

Analyze your cash flow with a free Wave account.

Sign up for free
Analyze your cash flow with a free Wave account.
Sign up for free

How does a business loan work?

A business loan is a loan specifically intended for business purposes. Companies may take out business loans to gain the financial assistance they need, at which point it becomes a debt they are obligated to repay according to the loan’s terms and conditions, which usually includes added interest.

How to apply for a loan like a pro

You should know exactly what you need to get a loan, including the proper business plans and documents. Keeping your documents in order will help make the loan application process much simpler and more painless. (Hint: Wave’s smart dashboard organizes your income, expenses, payments, and invoices.) Here are other helpful tips:

  • A good lender wants your business to succeed as much as you do. No matter what type of loan you’re interested in for your organization, be sure to keep a close, open dialogue with your lender so that they can give you the best advice.
  • Know and understand your credit score so that you can explain any shortfalls if you have them.
  • Avoid predatory loans such as payday loans, which are borrowed against your next paycheck.
  • Check out our other accounting tools that can help you manage your business finances.
  • You can keep track of your business cash flow by using Wave's free accounting software.

How to use the loan calculator

To calculate your loan details, including monthly payments, average monthly interest, and total borrowing cost, follow these instructions:

  1. Under "Loan amount", enter how much money you are planning to borrow as a loan.
  2. Under "Annual interest rate", enter how much in interest you would be willing to pay on your loan (look at lenders' websites to see what interest rates they offer on their loans).
  3. Under "Loan term in years", enter how much time you would like to fully pay back the loan, plus interest.
  4. Click Calculate to generate your results: see how much money you'll pay back monthly, how much interest you'll pay back monthly, the total amount of interest you'll be paying on your loan, and the total amount of money you'll be paying your lender at the end of your loan term.
  5. When comparing loans offered by lenders, use this tool to find out exactly how much your loan will cost you in the long-run; this tool can help you make smart decisions on financing your business!

‍

Essentials when applying for a loan

There are 7 main elements you should have ready when you want to apply for a business loan with a bank or lender:

  1. Business plan:
    You should have a detailed business plan ready to show lenders why you need to borrow money and how your business will make revenue so that you can pay the loan back. Some online lenders might not require a business plan, but they'll likely charge higher annual percentage rates (APRs).

  2. Cash flow:
    Lenders want to know how much cash you have at hand in a given month to cover personal expenses and business costs. Cash flow projections and other financial statements (like balance sheets and income statements) can paint lenders a picture of your finances and whether you'll realistically be able to make loan repayments on time.

  3. Credit score:
    Lenders will pull and review your credit score when you apply for a loan. Your credit score shows lenders how likely you are to make your loan repayments on time. The higher your credit score, the greater your approval chances, and the more likely you are to qualify for lower interest rates. In general, lenders require a minimum credit score of 680.

  4. Collateral:
    If you're applying for a secured loan, you may need to provide collateral in the form of business revenue or a personal asset. Collateral can help bring your interest rate down, but if you default on your loan (i.e. can't pay it back), your lender can obtain your collateral to cover their financial loss.

  5. Personal resume:
    Some lenders may want to learn more about your previous work history. Your resume can showcase your experience in your industry, your history with reputable organizations, and references from previous managers.

  6. Personal information and documents:
    Whether applying in-person or online, you may need to provide the following information:

    • Full name
    • Social Security number
    • Desired loan amount
    • Annual revenue
    • Personal tax returns
    • Personal bank statements
    • Personal debt-to-credit ratio

  7. Business information and documents:
    You'll also need to provide the following info about your business:

    • Business name
    • Business tax ID
    • Balance sheets
    • Articles of incorporation/sole proprietorship documents
    • Business licensess
    • Financial projections

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

  • ‍
  1. asdas
  2. asdas
  3. asdasd
  4. asdas
  5. da
  6. asd
  7. asd
  8. asda
  9. asd
  10. asd

There are 7 main elements you should have ready when you want to apply for a business loan with a bank or lender:

  1. Business plan:
    You should have a detailed business plan ready to show lenders why you need to borrow money and how your business will make revenue so that you can pay the loan back. Some online lenders might not require a business plan, but they'll likely charge higher annual percentage rates (APRs).

  2. Cash flow:
    Lenders want to know how much cash you have at hand in a given month to cover personal expenses and business costs. Cash flow projections and other financial statements (like balance sheets and income statements) can paint lenders a picture of your finances and whether you'll realistically be able to make loan repayments on time.

  3. Credit score:
    Lenders will pull and review your credit score when you apply for a loan. Your credit score shows lenders how likely you are to make your loan repayments on time. The higher your credit score, the greater your approval chances, and the more likely you are to qualify for lower interest rates. In general, lenders require a minimum credit score of 680.

  4. Collateral:
    If you're applying for a secured loan, you may need to provide collateral in the form of business revenue or a personal asset. Collateral can help bring your interest rate down, but if you default on your loan (i.e. can't pay it back), your lender can obtain your collateral to cover their financial loss.

  5. Personal resume:
    Some lenders may want to learn more about your previous work history. Your resume can showcase your experience in your industry, your history with reputable organizations, and references from previous managers.

  6. Personal information and documents:
    Whether applying in-person or online, you may need to provide the following information:

    • Full name
    • Social Security number
    • Desired loan amount
    • Annual revenue
    • Personal tax returns
    • Personal bank statements
    • Personal debt-to-credit ratio

  7. Business information and documents:
    You'll also need to provide the following info about your business:

    • Business name
    • Business tax ID
    • Balance sheets
    • Articles of incorporation/sole proprietorship documents
    • Business licensess
    • Financial projections

Benefits of using a loan calculator

  • Know exactly how much you'll be making in monthly payments based on your loan term and interest rate
  • Know how much of the money you're paying back is going towards your loan principal versus how much you're paying back in interest
  • Know the total amount of money you'll be paying back in interest based on your loan terms
  • Know exactly how much money you'll be paying back in total for getting a loan with specific terms and interest rates

Loan calculator

FAQs

Expand allCollapse all

What types of business loans are available?

What is a term loan?

What is a secured loan?

What is an SBA loan?

What is a business line of credit?

What types of business bank accounts are available?

What types of lenders are available in the market?

What do I need to qualify for a business loan?

How to apply for a loan like a pro

You should know exactly what you need to get a loan, including the proper business plans and documents. Keeping your documents in order will help make the loan application process much simpler and more painless. (Hint: Wave’s smart dashboard organizes your income, expenses, payments, and invoices.) Here are other helpful tips:

  • A good lender wants your business to succeed as much as you do. No matter what type of loan you’re interested in for your organization, be sure to keep a close, open dialogue with your lender so that they can give you the best advice.
  • Know and understand your credit score so that you can explain any shortfalls if you have them.
  • Avoid predatory loans such as payday loans, which are borrowed against your next paycheck.
  • Check out our other accounting tools that can help you manage your business finances.
  • You can keep track of your business cash flow by using Wave's free accounting software.
Manage your finances responsibly with free accounting software.

Powerful and 100% free accounting software that has everything you need to confidently run your business.