The business loan calculator at Mortgagecalculator.org can help business owners determine principal and interest payments, balloon repayments, and interest-only payments, according to First Bank. The number cruncher can also generate monthly amortization schedules. To get results, users should first input details such as loan amount, amortization term in years and annual interest rate into the relevant fields.Continue Reading
Business owners who have qualified for loans backed by the U.S. Small Business Administration, or SBA, can use the commercial loan calculator at FitSmallBusiness.com to estimate monthly repayments and annual interest rates. Designers of this calculator crafted it specifically for the SBA 7A loan, which is the agency's most popular loan program.
Apart from monthly repayments and yearly interest rates, the SBA loan calculator also computes the debt service coverage ratio, a measure that SBA lenders use to gauge a borrower's ability to repay loans, notes FitSmallBusiness.com. Prospective borrowers can manually compute this ratio by dividing their business' yearly net operating income by its annual loans repayments.
Repayment models for commercial loans and residential mortgages are significantly different, according to NerdWallet. Residential mortgages amortize an entire loan over a specified period, while commercial loans have a loan component that borrowers settle monthly and a balloon payment that becomes due at a specific time. Commercial loan calculators can help business owners navigate this maze of figures.Learn more about Business Resources