See what five common financing offers actually cost before you commit to one. Work out the monthly payment and full cost on a standard term loan, price what one draw on a credit line will run you, turn a factor rate or merchant cash advance into a real payback number, calculate net proceeds on an invoice factoring deal, and check whether your cash flow clears a lender's debt service coverage requirement, all from one page.
Match the calculator to the structure in your proposal. The math behind a fixed monthly loan is nothing like the math behind a factor rate advance, so picking the wrong one gives you a number that means nothing.
Adjust the sliders on the right and press Calculate. Nothing here is sent anywhere or touches your credit.
What is being borrowed and at what stated rate
How long you have to repay and any fee taken at closing
What you pull from the facility and the rate charged on it
Time outstanding and any fee allocated to the facility
Capital received upfront and any fee withheld from it
The fixed factor rate applied to produce total payback
Face value and the share the factor advances right away
Fee rate and how long your customer typically takes to pay
Rate and term on the financing you are weighing
What you'd borrow measured against what you already carry
Every calculator above outputs figures that only make sense once you know what a lender means by these terms. Five definitions cover most of it.
The process of paying down a loan through fixed payments where each one covers that period's interest first, with the rest reducing principal. Because interest is charged on a shrinking balance, the interest portion of each payment gets smaller over time.
Interest on a line of credit is charged only on the portion you have actually pulled, not the full facility limit. An undrawn $250,000 line with a $75,000 draw carries interest on $75,000 alone, plus whatever fee applies to the facility itself.
A fixed multiplier, not an interest rate. Multiply the advance by the factor rate once to get total payback. A 1.32 factor rate on $75,000 means $99,000 owed regardless of how quickly you repay it.
The share of the invoice the factor holds back rather than advancing immediately. Once your customer pays the invoice in full, the factor releases the reserve back to you, minus its fee for the days the invoice was outstanding.
Debt service coverage ratio. Annual cash available for debt divided by total annual debt payments, existing plus proposed. A DSCR under 1.0x means your operating income does not cover what you already owe, before adding anything new.
What a financing structure actually costs once every fee is folded in, not just the headline rate. Two offers with the same stated rate can carry very different effective costs depending on how their fees are structured.
If your calculation comes back far outside these bands, that is not automatically wrong, but it is worth a second look at the paperwork before you move forward.
| Product | What lenders typically quote |
|---|---|
| Term loan | 9% to 30% annual rate, 1% to 5% origination fee |
| Credit line | 10% to 28% annual rate on the drawn balance |
| Factor rate / MCA | 1.10 to 1.50 factor rate on the advance |
| Invoice factoring | 70% to 90% advance rate, 1% to 5% fee per 30 days |
| Debt capacity | 1.15x to 1.35x minimum DSCR at most alternative lenders |
Ranges are general market reference points, not a quote from any specific lender on this site. Your actual terms depend on revenue, time in business, industry, and credit profile.
Run the calculated payment against your slowest recent month, not your average one. If it does not leave room for payroll and suppliers, the deal is tighter than it looks.
Confirm whether the fee is withheld from proceeds or added on top of the balance. The two produce very different net cash even at the same headline number.
Save the inputs, the date, and the written offer together. Line up net proceeds, total repaid, and payment schedule against what the contract actually states.
Rarely exactly. Any origination or withheld fee sits on top of the stated rate. If a fee comes out of proceeds, you receive less than the loan amount but still repay the full amount borrowed, which pushes your effective cost above the number on the term sheet.
No. A factor rate is a one time multiplier applied to the advance to set a fixed total payback. It never compounds and never falls, even if you repay ahead of schedule. An interest rate accrues over time on a balance that changes, which is a fundamentally different calculation.
Because repeated draws depend on timing and repayment habits unique to each borrower, and modeling that accurately would require assumptions this tool cannot make on your behalf. One constant draw held for a defined period gives a clean number you can compare across offers. Track separate draws individually for a full picture.
It shows the annual debt service headroom your cash flow supports at a 1.25x coverage threshold, expressed in dollars rather than a loan amount, since the loan size that headroom supports still depends on the rate and term a lender offers you.
No. Every calculation runs in your browser. Nothing is submitted anywhere, no lender sees your inputs, and no credit inquiry of any kind is triggered. That only happens if you separately apply with a lender.
Close enough to plan around when your inputs come from a written proposal, but it will not catch everything. Industry, geography, statement patterns, and a lender's own overlays can all move the final number. Treat this as your baseline, then compare it against a real offer from a vetted lender.
Calculator disclaimer: This toolkit is for informational and educational purposes only. Results are estimates based on the figures you enter and do not constitute a loan offer, a guarantee of approval, or a commitment to lend. Actual rates, fees, and terms are set solely by the lender. Compare Business Loans Online is not a lender and makes no credit decisions. Review the full terms with your lender and consult a qualified financial advisor before signing any financing agreement.