Loan calculator

When you’re looking for debt financing, there are many different types of lenders to turn to. While you don’t necessarily need to know the nuances of financing, it helps to know your specific needs so your lender can direct you accordingly. Our loan calculator will help you determine your estimated payments for different loan amounts, interest rates, and terms.

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Our Loan calculator is currently available for US residents only

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How does a business loan work?

A business loan is a loan specifically intended for business purposes. Companies may take out business loans to gain the financial assistance they need, at which point it becomes a debt they are obligated to repay according to the loan’s terms and conditions, which usually includes added interest.

How to apply for a loan like a pro

You should know exactly what you need to get a loan, including the proper business plans and documents. Keeping your documents in order will help make the loan application process much simpler and more painless. (Hint: Wave’s smart dashboard organizes your income, expenses, payments, and invoices.) Here are other helpful tips:

  • A good lender wants your business to succeed as much as you do. No matter what type of loan you’re interested in for your organization, be sure to keep a close, open dialogue with your lender so that they can give you the best advice.
  • Know and understand your credit score so that you can explain any shortfalls if you have them.
  • Avoid predatory loans such as payday loans, which are borrowed against your next paycheck.
  • Check out our other accounting tools that can help you manage your business finances.
  • You can keep track of your business cash flow by using Wave's free accounting software.

How to use the loan calculator

To calculate your loan details, including monthly payments, average monthly interest, and total borrowing cost, follow these instructions:

  1. Under "Loan amount", enter how much money you are planning to borrow as a loan.
  2. Under "Annual interest rate", enter how much in interest you would be willing to pay on your loan (look at lenders' websites to see what interest rates they offer on their loans).
  3. Under "Loan term in years", enter how much time you would like to fully pay back the loan, plus interest.
  4. Click Calculate to generate your results: see how much money you'll pay back monthly, how much interest you'll pay back monthly, the total amount of interest you'll be paying on your loan, and the total amount of money you'll be paying your lender at the end of your loan term.
  5. When comparing loans offered by lenders, use this tool to find out exactly how much your loan will cost you in the long-run; this tool can help you make smart decisions on financing your business!

Essentials when applying for a loan

There are 7 main elements you should have ready when you want to apply for a business loan with a bank or lender:

  1. Business plan:
    You should have a detailed business plan ready to show lenders why you need to borrow money and how your business will make revenue so that you can pay the loan back. Some online lenders might not require a business plan, but they'll likely charge higher annual percentage rates (APRs).

  2. Cash flow:
    Lenders want to know how much cash you have at hand in a given month to cover personal expenses and business costs. Cash flow projections and other financial statements (like balance sheets and income statements) can paint lenders a picture of your finances and whether you'll realistically be able to make loan repayments on time.

  3. Credit score:
    Lenders will pull and review your credit score when you apply for a loan. Your credit score shows lenders how likely you are to make your loan repayments on time. The higher your credit score, the greater your approval chances, and the more likely you are to qualify for lower interest rates. In general, lenders require a minimum credit score of 680.

  4. Collateral:
    If you're applying for a secured loan, you may need to provide collateral in the form of business revenue or a personal asset. Collateral can help bring your interest rate down, but if you default on your loan (i.e. can't pay it back), your lender can obtain your collateral to cover their financial loss.

  5. Personal resume:
    Some lenders may want to learn more about your previous work history. Your resume can showcase your experience in your industry, your history with reputable organizations, and references from previous managers.

  6. Personal information and documents:
    Whether applying in-person or online, you may need to provide the following information:

    • Full name
    • Social Security number
    • Desired loan amount
    • Annual revenue
    • Personal tax returns
    • Personal bank statements
    • Personal debt-to-credit ratio

  7. Business information and documents:
    You'll also need to provide the following info about your business:

    • Business name
    • Business tax ID
    • Balance sheets
    • Articles of incorporation/sole proprietorship documents
    • Business licensess
    • Financial projections

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

  1. asdas
  2. asdas
  3. asdasd
  4. asdas
  5. da
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There are 7 main elements you should have ready when you want to apply for a business loan with a bank or lender:

  1. Business plan:
    You should have a detailed business plan ready to show lenders why you need to borrow money and how your business will make revenue so that you can pay the loan back. Some online lenders might not require a business plan, but they'll likely charge higher annual percentage rates (APRs).

  2. Cash flow:
    Lenders want to know how much cash you have at hand in a given month to cover personal expenses and business costs. Cash flow projections and other financial statements (like balance sheets and income statements) can paint lenders a picture of your finances and whether you'll realistically be able to make loan repayments on time.

  3. Credit score:
    Lenders will pull and review your credit score when you apply for a loan. Your credit score shows lenders how likely you are to make your loan repayments on time. The higher your credit score, the greater your approval chances, and the more likely you are to qualify for lower interest rates. In general, lenders require a minimum credit score of 680.

  4. Collateral:
    If you're applying for a secured loan, you may need to provide collateral in the form of business revenue or a personal asset. Collateral can help bring your interest rate down, but if you default on your loan (i.e. can't pay it back), your lender can obtain your collateral to cover their financial loss.

  5. Personal resume:
    Some lenders may want to learn more about your previous work history. Your resume can showcase your experience in your industry, your history with reputable organizations, and references from previous managers.

  6. Personal information and documents:
    Whether applying in-person or online, you may need to provide the following information:

    • Full name
    • Social Security number
    • Desired loan amount
    • Annual revenue
    • Personal tax returns
    • Personal bank statements
    • Personal debt-to-credit ratio

  7. Business information and documents:
    You'll also need to provide the following info about your business:

    • Business name
    • Business tax ID
    • Balance sheets
    • Articles of incorporation/sole proprietorship documents
    • Business licensess
    • Financial projections

Benefits of using a loan calculator

  • Know exactly how much you'll be making in monthly payments based on your loan term and interest rate
  • Know how much of the money you're paying back is going towards your loan principal versus how much you're paying back in interest
  • Know the total amount of money you'll be paying back in interest based on your loan terms
  • Know exactly how much money you'll be paying back in total for getting a loan with specific terms and interest rates

Loan calculator

FAQs

What types of business loans are available?

There are a few different types of business loans available for freelancers and entrepreneurs. The most common types of business funding are term loans, secured loans, SBA loans, and business lines of credit.

What is a term loan?

A term loan is when a lender provides you with an upfront lump sum of cash, which you agree to repay at a set interest rate over a specific period of time.

What is a secured loan?

A secured loan is similar to a term loan. The main difference is that to qualify for a secured loan, you will need to offer your lender some form of collateral, such as a portion of your business revenue or a personal asset like a car. If you default on your loan, your lender can obtain your collateral to cover their financial loss. Use the loan calculator above and make sure you’re able to make the monthly payments before signing up for a secured loan, so that you don’t lose your collateral.

What is an SBA loan?

Available in the U.S., an SBA loan is partially backed by the Small Business Administration, a government group that focuses on helping small businesses grow. The SBA partners with lenders across the country to help small business owners access loans at affordable rates. SBA loans can offer lower down payments, more flexible qualification requirements, and access to counselling as you continue growing your business. You can learn more from the SBA.

What is a business line of credit?

Although technically not a loan, a business line of credit can also be used as a source of cash flow for small business owners. With a line of credit, you can access funds up to a certain credit limit determined by your lender. You pay back any money you’ve withdrawn on a monthly basis, and you only pay interest on the money you’ve withdrawn.

What types of business bank accounts are available?

If you’re looking for options to make day-to-day business purchases, a Wave Money bank account might be a solution for you. With Wave Money, there are no monthly fees, account minimums, or transfer fees. In addition, any purchases you make with your Visa® business debit card from Wave will automatically sync with Wave Accounting, allowing you to manage your business purchases and bookkeeping much easier when tax season approaches.

What types of lenders are available in the market?

There are two key types of lenders available for freelancers and entrepreneurs. Here’s a brief overview:

  • Banks: If you’re looking for a term loan or a business line of credit, a bank may be your best place to start. You can work with an advisor in-person or start the application process online to find out what type of loan you can qualify for. Banks will often look at your personal credit history when approving you for a loan. If you already have a personal account with the bank that’s in good standing, you might have an easier time getting approved for funds.
  • Online lenders: If you’re hesitant about working with a bank, there are online lenders available across North America that can provide you with access to loans and lines of credit. Many online lenders allow you to complete your entire application online, followed by a phone call with a representative to review your information and discuss details. Applying online can be quicker than working with traditional lenders, but because some of these lenders don’t require credit checks, they may offer much higher interest rates on their loans. Make sure you’re able to afford monthly payments before signing up for a high-interest loan.

What do I need to qualify for a business loan?

Here are the different items you need ready in order to qualify for a business loan:

  • Business plan: Have a detailed business plan ready to show lenders why you need to borrow money, how your business will make money, and how you will pay the loan back
  • Business information and documents: You should have other business documents ready, including business licenses, ownership documents, and tax documents
  • Cash flow statements: Cash flow projections, balance sheets, income statements, and other financial statements can help show lenders that you can make loan repayments on time
  • Credit score: You should aim to have a credit score of at least 680 to qualify for a business loan from a traditional lender, like a bank; some online lenders offer loans without credit checks but at a noticeably higher interest rate
  • Personal resume: Have your resume ready to show lenders your experience in your industry and your history working with reputable organizations
  • Personal documents: You’ll need to have a social security number to share with lenders, along with personal bank statements and your debt-to-credit ratio

How to apply for a loan like a pro

You should know exactly what you need to get a loan, including the proper business plans and documents. Keeping your documents in order will help make the loan application process much simpler and more painless. (Hint: Wave’s smart dashboard organizes your income, expenses, payments, and invoices.) Here are other helpful tips:

  • A good lender wants your business to succeed as much as you do. No matter what type of loan you’re interested in for your organization, be sure to keep a close, open dialogue with your lender so that they can give you the best advice.
  • Know and understand your credit score so that you can explain any shortfalls if you have them.
  • Avoid predatory loans such as payday loans, which are borrowed against your next paycheck.
  • Check out our other accounting tools that can help you manage your business finances.
  • You can keep track of your business cash flow by using Wave's free accounting software.
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