The calculator on this page works out level monthly payments from an amount, an annual rate and a term in months. Worked examples cover a salon term loan, a debt service coverage check done by hand, interest-only months on a line balance, and a draw converted to fixed installments.
Using it as a commercial term loan calculator: a Punta Gorda, FL salon's color bar and booking system
Illustration only, invented figures: a Punta Gorda salon prices a color bar (a mixing station, storage cabinets and a color-dispensing scale) and booking hardware at $13,260, and enters $13,260, 11.45% and 42 months in the calculator on this page. The monthly payment comes to $384.67.
| Item | Amount | How it is found |
|---|---|---|
| Monthly payment | $384.67 | Level payment for 42 months |
| Total repaid | $16,156.14 | 42 times the rounded payment |
| Total interest | $2,896.14 | Total repaid less the amount |
Because the calculator keeps every decimal of the payment while this table multiplies the rounded one, the two sets of totals may part by a few cents. The term loans page explains when a fixed schedule like this fits better than a line.
A DSCR check the calculator does not run, worked by hand for a Punta Gorda, FL accounting firm
A debt service coverage ratio (DSCR) divides a business's annual net operating income by its annual debt payments. The calculator on this page gives no DSCR; what it supplies is the new payment, the missing piece of the ratio. A funding partner may use its own minimum ratio; this site states none.
Illustration only, invented figures: a Punta Gorda accounting firm has $96,400 of annual net operating income and already pays $1,180 a month on existing debt, $14,160 a year. The firm is weighing $64,800 at 10.35% for 60 months; entered in the calculator, that is $1,387.99 a month, or $16,655.88 over a year.
| Measure | Before | After |
|---|---|---|
| Annual debt payments | $14,160 | $30,815.88 |
| Net operating income | $96,400 | $96,400 |
| DSCR (income divided by payments) | 6.81 | 3.13 |
In this invented case, the ratio falls from 6.81 to 3.13 once the new payment is added (our arithmetic).
Interest-only months on a credit line balance, figured by hand for a Punta Gorda, FL dental office
Some credit line agreements ask only for the interest on the balance each month for a period, with the balance itself due later. The calculator on this page does not show that case, because interest-only payments leave the balance unchanged.
Illustration only, invented figures: a Punta Gorda dental office carries a $27,500 line balance at 12.55% a year. One month of interest is $27,500 x 12.55% / 12 = $287.60. Four interest-only months cost $1,150.40, and $27,500 is still owed at the end of them. Paid off instead in 12 level payments, the same balance takes $2,450.42 a month, which the calculator on this page shows when 12 is entered as the term.
Turning one draw into fixed installments: a Punta Gorda, FL real estate office's payoff schedule
Some lines let a business convert a draw into fixed installments, which is the case the calculator on this page handles directly. The choice is the payoff period.
| Payoff period | Monthly payment | Total repaid | Interest |
|---|---|---|---|
| 18 months | $972.96 | $17,513.28 | $1,673.28 |
| 30 months | $620.89 | $18,626.70 | $2,786.70 |
Stretching the draw to 30 months trims $352.07 from each payment for the Punta Gorda real estate office in this invented example, at the price of $1,113.42 more interest. Offices of real estate agents and brokers in Charlotte County, FL reported $20.97 million of annual payroll in 2023, the total for the 212 offices with employees (CBP, NAICS 5312). Draw periods and limit increases get their own treatment on the line of credit page.
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