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Business Loan Calculator: Payments, Cost and Cash Flow

Run the real math behind five common financing structures before you sign anything. Estimate monthly payments and total cost on a standard term loan, price a single credit-line draw, convert a factor rate or merchant cash advance into a payback amount, work out net proceeds on an invoice factoring deal, and check whether your cash flow clears a lender's debt service coverage requirement, all in one place.

No credit impact Under 2 minutes 5 loan types, one tool
1

Funding amount & rate

Principal borrowed and the annual interest rate stated in the agreement

Funding amount$75,000
$5,000$2,000,000
Annual interest rate12.5%
3%60%
2

Repayment term & fee

Months to repay and any fee withheld from proceeds at funding

Repayment term36 months
3 months120 months
origination fee2.0%
0%10%
Standard monthly amortization. The fee is assumed to be withheld from proceeds while the full principal is repaid.
1

Draw & rate

Amount drawn against the facility and the annual rate charged on it

Amount drawn$75,000
$5,000$2,000,000
Annual interest rate12.5%
3%60%
2

Term & fee

How long the draw stays outstanding and any allocated facility fee

Time draw remains outstanding36 months
3 months120 months
Allocated fee2.0%
0%10%
One constant draw, not repeated borrowing. Interest is calculated on the drawn balance for the full outstanding period. If you draw, repay partially, and draw again, track each draw separately.
1

Advance amount & fee

The capital you receive upfront and any fee withheld from it

Funding amount$75,000
$5,000$500,000
origination fee2.0%
0%10%
2

Factor rate

The fixed multiplier applied to the advance to produce total payback

Factor rate1.32
1.051.60
Purchased amount math. A factor rate is a multiplier on the advance — it does not compound and does not decrease if you repay early. Average weekly remittance below assumes a 36-month equivalent payback horizon; confirm the actual weeks in your proposal.
1

Invoice value & advance rate

Face value of the invoice and the percentage the factor advances immediately

Invoice face value$75,000
$5,000$500,000
Advance rate85%
60%98%
2

Fee & collection period

The factor's fee percentage and how long until your customer settles the invoice

Fee per 30 days2.0%
0.5%5%
Customer payment time60 days
7 days120 days
Advance, reserve and fee. Assumes the fee applies to invoice face value for each 30-day period. Extra wire, minimum-volume and late fees are excluded — confirm the exact fee structure in your factoring agreement.
1

Proposed rate & term

The rate and term on the new loan being considered

Annual interest rate12.5%
3%60%
Repayment term36 months
3 months120 months
2

Loan amount & cash flow

New loan being considered against cash available and existing debt

New loan amount$75,000
$5,000$2,000,000
Annual cash available for debt$180,000
$30,000$2,000,000
Existing annual debt payments$36,000
$0$500,000
Cash-flow coverage test. Headroom is calculated against a 1.25× DSCR threshold, a common alternative-lender minimum. Bank lenders often require 1.25×–2.0×; a DSCR below 1.0× means total debt service exceeds operating income.
Results panel Awaiting input

Result appears here

Set your figures with the sliders and click Calculate. No sign-up, no credit check.

📋Enter figures from a written proposal
⚖️Confirm whether fees are withheld or financed
📉Test payment against your weakest recent month
📄Keep the result beside the written contract
✓ Educational tool — not a lender quote
✓ No approval estimate or legal advice
✓ 100% free, no registration
How to use these calculators

Choose the formula that matches the contract

Each tab mirrors a specific loan product structure. Select the one that matches the agreement you are pricing — not the product that sounds closest. A term loan and a revenue-based advance use entirely different math; mixing them produces a misleading result.

01
Term loan — fixed monthly amortization

Uses standard monthly amortization and treats the selected fee as withheld from proceeds while the full principal is still repaid. Each payment reduces the outstanding balance at a declining interest charge, so total interest falls the faster you pay it down.

Fixed paymentAmortizing
02
Credit line — one revolving draw

Estimates one constant draw, not repeated borrowing. Interest is calculated on the drawn balance for the full period it stays outstanding, plus any allocated facility fee, so it shows the true cost of holding that single draw.

One drawDrawn balance only
03
Factor or MCA — purchased amount math

Calculates the purchased or payback amount and average weekly remittance without presenting a factor rate as an APR. The total payback is fixed at signing, so it does not fall if you repay early or if sales slow down.

Purchased amountWeekly remittance
04
Invoice factoring — advance, reserve and fee

Separates the initial advance, the reserve held back and a time-based fee, so you can see true net proceeds instead of the invoice face value. The reserve returns once your customer pays, minus the fee for the days it took.

AdvanceReserveNet proceeds
05
Debt capacity — cash-flow coverage test

Compares annual cash available for debt service against existing and proposed payments. Run this one first — if the coverage ratio fails at the rate and term you are considering, the rest of the shopping trip may be wasted effort.

DSCRHeadroom
No single calculator can reconstruct an agreement from a headline rate. Enter figures from a written proposal, confirm whether fees are withheld or financed, and check whether interest uses a daily balance, variable index or unusual payment calendar.
Before you sign

Run a downside case. Keep the result beside the contract.

A payment that covers comfortably against average revenue can create a cash flow problem in a slow month. These steps take under five minutes.

📉
Stress-test the payment

After calculating the expected payment, test the same amount against your weakest recent month, not the average one. For variable-rate debt, rerun it at a higher benchmark; for invoice finance, rerun it with slower customer payment.

Leaves room for payroll, tax, suppliers and rent
Repeat at a higher rate for any variable-rate debt
Add 30 days to the collection period for invoice deals
⚖️
Confirm the fee structure

Check whether the fee in your proposal is withheld from proceeds or added to the balance. A $3,000 fee withheld from a $150,000 loan means $147,000 arrives while you still repay $150,000 plus interest — a very different cost than it looks on paper.

Check for a prepayment penalty on early payoff
Confirm interest runs on the original or declining balance
Verify any personal guarantee or blanket lien terms
📄
Keep it beside the contract

Save your inputs, the calculation date and the written offer together, then line up net cash received, total dollars repaid, payment frequency and default terms against what the paperwork actually says.

Net proceeds received vs total dollars repaid
Payment frequency — daily ACH vs fixed monthly
What exactly triggers a default under the agreement

These calculators are educational planning tools, not approval estimates, legal advice or lender quotes. Compare at least two written offers before accepting any proposal.

FAQ

Calculator questions, answered

Clear answers about how each calculator works, what the figures mean, and what to do with the result.

1 Why does the effective APR differ from the stated interest rate?
The effective APR accounts for the origination or withheld fee in addition to the stated interest rate. When a fee is deducted from proceeds, you receive less than the loan amount but still repay the full principal. That shortfall increases the annualised cost above the headline rate.
2 What is the difference between a factor rate and an APR?
A factor rate is a multiplier applied once to the advance amount to produce a fixed total payback. It does not compound, does not accrue over time, and does not decrease if you repay early. An APR is an annualised percentage that accounts for time and compounding. Converting a factor rate to an approximate APR requires knowing the actual payback period.
3 Why does the credit-line tab model only one draw?
Modelling repeated draws would require assumptions about draw timing, repayment pace, and utilisation patterns that vary widely by borrower. One constant draw held for a defined period gives a clean, directly comparable result. If you draw, repay partially, and draw again, track each draw separately for an accurate picture of total cost.
4 How does the debt-capacity screen calculate headroom?
The screen takes your annual cash available for debt, divides it by the 1.25× DSCR threshold, then subtracts your existing annual debt payments. What remains is the annual debt-service headroom your cash flow can support at that threshold — shown as a dollar amount rather than a converted loan principal, since the amount you could borrow against that headroom still depends on the rate and term you're offered.
5 Does using this calculator affect my credit score?
No. This is a standalone calculation tool. It does not connect to any lender system, submit an application, or perform a credit inquiry of any kind. Your credit score is completely unaffected. A credit inquiry only occurs when you submit a formal application directly with a lender.
6 How accurate are these results compared to a real lender offer?
When figures are entered directly from a written proposal, the term loan and credit line calculations are arithmetically exact. The MCA weekly remittance and factoring annualised cost are reasonable approximations for cross-product comparison. The debt-capacity result is accurate for the inputs provided but does not account for lender-specific adjustments such as add-backs or industry overlays. Treat all results as planning estimates, not lender commitments.
Calculator disclaimer: These tools are for informational and educational purposes only. Results are estimates based on the inputs you provide and do not constitute a loan offer, guarantee of approval, or commitment to lend. Actual loan offers, rates, and terms are determined solely by the lender. Business Loans IQ is not a lender and makes no credit decisions. Always review full loan terms with your lender and consult a qualified financial advisor before entering into any financing agreement.