Term Loan Calculator
Merchant Maverick’s term loan calculator can help you estimate loan metrics, including the APR, the cents on the dollar cost (how much you pay in fees per dollar borrowed), and the repayment amount per payment period.
How To Use The Term Loan Calculator
The numbers produced by this calculator are estimates; any numbers you get from your lender will be more accurate to your specific situation.
Input the following data into the calculator.
- Loan Amount: The amount of money you are borrowing, including the origination fee (a fee deducted by the lender before they send the money to you). This value is expressed as a dollar amount.
- Interest Rate: The interest rate assigned to the loan. This value is expressed as a percentage.
- Repayment Frequency: How frequently you have to make repayments. Payment frequency can be monthly, bi-monthly (twice per month), or weekly.
- Origination Fee: A fee deducted from the borrowing amount by the lender before the loan is disbursed to you. This number is expressed as a percentage.
- Number Of Payments: The number of payments you have to make, in total. The amount of payments you make will depend on the payment frequency and the term length. Depending on the payment frequency, here are the number of payments you would have to make in one year:
- Monthly: 12 payments per year
- Bi-monthly: 24 payments per year
- Weekly: 52 payments per year
- Periodic Maintenance Fee: An additional fee charged for maintaining your account. This is not a standard fee, but we’ve included it just in case. This number is expressed as a dollar value.
Interpreting Your Results
Interpret your results carefully, so you have the best possible information to use when comparing one lender to another.
The outputs you’ll receive are as follows:
- Total Repayment: The total amount you’ll have to repay, including the loan amount, the origination fee, the interest charges, and any maintenance fees.
- Financing Cost: The total amount you have to pay in fees for borrowing. This number is comprised of interest charges, origination fee, and maintenance fees, but does not include the loan amount.
- Payment Per Period: The amount you will have to pay each payment period.
- APR: Short for annual percentage rate, this number expresses the rate of borrowing over the course of a year, inclusive of the interest rate, origination fee, and maintenance fee.
- Cents On The Dollar: The amount paid in fees for each dollar borrowed.
Evaluating & Comparing Loan Offers
This calculator provides all the information you need to easily understand and compare loan offers. From this calculator, you will find out the payment per period, the total repayment, the total financing cost, the cents on the dollar, and the estimated APR.
Using this information, you can understand your periodic payments plus the true rate and total cost of borrowing.