Use our Term loan calculator to calculate the expense of your term loan by plugging in the numbers.
A five-year term may seem more appealing compared to a two-year term since your monthly payments will be less. Just remember that extending the loan term means you’ll pay more in total interest, which makes the loan more expensive overall.
For example, Tom’s Bakery wants a $100K loan for new equipment and repairs. Tom applies for a term loan and receives approval for the $100K loan amount at an interest rate of 5% over two years.
By entering Tom’s $100K loan amount, 7% interest rate and two-year repayment term into the Term loan calculator, we can see Tom would need to pay $4,477 month for two years.
