Short Term Loan Calculator

How Your Short Term Loan Payments Are Calculated

Short term loans can help keep your business out of hot water with access to working capital when you need it. Our short term loan calculator accounts for the primary factors that influence payments—loan amount, interest rate, loan term, and collateral—to give you a sense of the monthly payments your business will owe.

Short Term Loan Amounts

Your short term loan amount will be determined by your business revenue, business history, credit score, and experience in your field, as well as how you plan to use the loan. You can finance as little as $2,500 or as much as $250,000.

Short Term Loan Interest Rates

Interest rates for short term loans average 8–13% and are typically fixed. Fixed rates are awesome because they stay consistent throughout the life of the loan, so you always know exactly how much your payment will be. As with most interest rates, a solid credit score helps—the higher your score, the lower your interest rate will likely be.

Short Term Loan… Er, Terms

Short term loans have, you know, shorter terms in comparison to other loans. Most of them are 1–5 years and are backed by collateral such as a vehicle, property, or another tangible asset. Putting up more collateral often helps you get a better deal on your loan.

Let’s Get Specific (About Your Rates and Terms)

Instead of spending a day Googling rates that may or may not apply to you, take 15 minutes to find out the exact products and rates your business qualifies for. Our single application gives you access to 75+ lenders. That breaks down to an average of 12 seconds per lender. You won’t find a better investment… for your time.

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Consider Potential Fees

You may run into 2 fees with short term loans: application fees and origination fees. Here’s what you need to know.

Application Fees

You’ll never be charged when applying for and reviewing loan options through Lendio, but other lenders may charge you for applying. If you’re comparing lenders or marketplaces, ask about application fees before you apply.

Origination Fees

Origination fees are charged by some lenders when a loan is funded. Ask if your lender has one and how much you can expect it to be to help you determine the total cost of your short term loan.

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4 Steps to Reduce Short Term Loan Costs

• Make minimum payments on time every month. You’ll avoid late fees and boost your credit score.
• If you think you are going to miss a payment, talk to your lender about it in advance.
• Schedule automatic payments. If you like to make payments manually, set calendar reminders so you never forget or miss a payment.
• Find out where your lender stands on early payment. Some lenders will offer you a modest discount for paying off your loan early, while others may implement prepayment penalties. Before you rush to make advance payments, ask your lender about any potential penalties and discounts that apply to your short term loan.