Enter an amount, an annual rate and a term in months to get the monthly payment, total interest and total repaid. Below: a laptop replacement, an EKG machine with money down, a short repair loan, and a debt service coverage check done by hand. All figures are invented.
What the loan repayments calculator returns, tried on an Oklahoma County, OK laptop replacement
A law firm replacing 14 laptops at once has a $21,700 invoice. Entered as $21,700, 11.45% and 24 months, the calculator returns three figures.
| Figure | Result |
|---|---|
| Monthly payment | $1,015.93 |
| Total interest | $2,682.32 |
| Total repaid | $24,382.32 |
The term field takes months. Typing 2 for two years instead of 24 gives a payment of $11,005.54, close to half the whole invoice each month: far too high. If a result looks that large, check the term first. The rate field takes the annual rate as a percent, so 11.45 means 11.45% a year, not a monthly figure, and the amount field takes the sum financed, not the price before any trade-in or deposit.
Using it as an equipment loan calculator for an EKG machine at an Oklahoma County, OK physician office
This tool has no down payment field, so enter the price minus any money down. A physician office buying an EKG machine quoted at $9,480 with $1,000 down enters $8,480.
At 12.75% over 36 months the payment is $284.70 a month and the interest is $1,769.20; the 36 payments total $10,249.20 (our arithmetic). The calculator on the equipment financing page has a separate down payment field and adds it back into the total cost.
A mobile EKG cart that plugs into an outlet is equipment; anything wired into the building is property work and outside this site.
Working capital loan calculator use: a sterilizer repair at an Edmond, OK dental office
Short terms work the same way. A dental office facing a $5,940 sterilizer repair bill tries 7 months at 14.75%: the payment is $890.80 a month, the interest $295.60, and the 7 payments total $6,235.60 (our arithmetic).
Stretching the same bill to 12 months lowers the payment to $535.43 but raises the interest to $485.16, $189.56 more than the 7-month version (our arithmetic). A salon replacing a hood dryer, or a law firm paying for a server repair, can run the same two terms side by side before picking one.
Shortening the term raises the payment and lowers the interest; lengthening it does the opposite. The working capital loans page covers what this kind of loan pays for.
DSCR commercial loan calculator math, done by hand for an Edmond, OK dental office's $96,000 equipment package
For a dental office financing a $96,000 package of imaging and operatory equipment, the debt service coverage ratio (DSCR) divides the income a business has left to pay debts by the yearly payments on them. The tool above stops short of that ratio, yet the payment it returns is the first number the ratio needs.
| Step | Figure |
|---|---|
| Loan amount, rate, term | $96,000, 10.45%, 60 months |
| Monthly payment from the calculator | $2,061.04 |
| Yearly debt service (x 12) | $24,732.48 |
| Invented net operating income | $58,000 |
| DSCR (income / debt service) | 2.35 |
Run again at 84 months, the payment drops to $1,616.12, yearly debt service to $19,393.44, and the DSCR rises to 2.99; the trade is $12,091.68 more interest over the longer term (our arithmetic).
A DSCR of 1.00 means the income exactly meets the payments; above 1.00 leaves room to spare. Some partners may set a minimum ratio; any figure they use comes from their own review. The term loans page splits the first three payments of a fixed loan into interest and principal.
By Skywater Business Funding ยท Updated
