Calculator
Loan offer comparison calculator
Estimates only. Educational only; not legal, tax or financial advice. No guarantee of savings or approval.
Compare two loan offers
| Comparison | Offer A | Offer B |
|---|---|---|
| Loan amount (before fees) | $250,000 | $250,000 |
| Interest rate | 9.50% | 10.25% |
| Term | 120 months | 120 months |
| Fee treatment | Financed | Financed |
| Total fees | $7,500 | $1,000 |
| Amount financed | $257,500 | $251,000 |
| Cash due at closing | $0 | $0 |
| Monthly payment | $3,331.99 | $3,351.83 |
| Estimated APR incl. fees | 10.20% | 10.35% |
| Total interest | $142,338 | $151,219 |
| Total cost (interest + fees) | $149,838 | $152,219 |
| Total paid (principal + interest + fees) | $399,838 | $402,219 |
Offer A has $2,381 lower estimated interest + fees over its full term.
Assumes fixed rates, equal monthly payments, no balloon payment and repayment over the full term. APR is an annualized cash-flow estimate, not a lender’s official disclosure. When fees are paid at closing, APR uses loan amount minus fees as net proceeds. Early payoff, variable rates and additional fees change the result. Profit Theory, LLC is not a lender or payment processor. Lenders decide approval and actual terms. Estimates only; no guaranteed approval, rate or savings.
Estimates only. Results vary. No guarantee of approval, rates or savings.
Talk with a financing specialistThe formulas
Fees = loan amount × origination % + closing and packaging fees
Principal = loan amount + fees (if financed) or loan amount (if paid at closing)
Payment = P × r ÷ (1 − (1 + r)^−n)
All-in cost = total payments + fees paid at closing − loan amount
Effective APR: the rate where the present value of payments = cash you actually receive
Worked example (illustrative numbers)
- A small business needs $250,000 to replace equipment and expand capacity. These are illustrative offers, not actual lender quotes. Both run for 120 months, with fees financed.
- Offer A: 9.50% with 2.00% origination + $2,500 closing = $7,500 in fees
- Offer B: 10.25% with no points + $1,000 closing = $1,000 in fees
- Offer A: monthly payment $3,331.99; estimated APR 10.20%; interest plus fees $149,838; total paid $399,838.
- Offer B: monthly payment $3,351.83; estimated APR 10.35%; interest plus fees $152,219; total paid $402,219.
- Offer A has $2,381 less estimated interest plus fees over the full term. This is an example result, not a promise of savings or a recommendation.
- If you plan to pay off early, upfront fees weigh more heavily
Key takeaways
Common questions
What are points on a business loan?
Points are upfront fees expressed as a percent of the loan amount; one point equals 1% of the loan. Lenders may call them origination or packaging fees.
What is an effective APR?
It's the annual rate that accounts for both interest and upfront fees, based on the cash you actually receive. It makes offers with different fees comparable.
Should I finance fees or pay them at closing?
Financing keeps cash in the business but adds interest. Paying at closing lowers total cost if you have the cash. The calculator shows both.
Why is my APR estimate different from my lender's?
Lenders may include or exclude different fees and use different calculation methods. Ask the lender for a written cost disclosure.
Does this calculator guarantee these terms?
No. Profit Theory, LLC is not a lender. Lenders set rates and fees, and approval is never guaranteed.
Keep learning
Estimates only. Results vary. No guarantee of approval, rates or savings.
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