Business Loan Amortization Calculator
This calculator computes business loan amortization for multiple payment frequencies and modes, including monthly, bi‑weekly (standard 26 payments/year) and an accelerated bi‑weekly method that pays half of the equivalent monthly payment every two weeks. Use recurring extra payments to model accelerated principal reduction.
Results include per‑period payment, total paid, total interest, and an estimate of repayment time. Outputs are numerical estimates for planning and negotiation; always confirm final terms with your lender.
Uses half of the standard monthly payment paid every two weeks (commonly used accelerated method). This typically reduces term and total interest compared to a straight 26‑period conversion.
Inputs
Advanced inputs
Bi‑weekly options
Results
Bi‑weekly payment (accelerated)
$966.64
Number of bi‑weekly payments (exact)
118.3374
Equivalent months to repay
54.6172
Total paid
$114,389.63
Total interest
$14,389.63
| Output | Value | Unit |
|---|---|---|
| Bi‑weekly payment (accelerated) | $966.64 | USD |
| Number of bi‑weekly payments (exact) | 118.3374 | — |
| Equivalent months to repay | 54.6172 | months |
| Total paid | $114,389.63 | USD |
| Total interest | $14,389.63 | USD |
Visualization
Methodology
The calculator models amortizing loans using standard time‑value‑of‑money formulas. Periodic interest rates are derived by dividing the annual rate (APR) by the number of payment periods per year (12 for monthly, 26 for bi‑weekly, 52 for weekly).
The accelerated bi‑weekly method commonly used in practice takes half the monthly payment and applies it every two weeks. This produces extra principal payments over a year (26 half‑payments equals 13 full monthly payments), shortening the schedule and reducing interest compared to a straight 12‑period conversion.
Further resources
Expert Q&A
Is the accelerated bi‑weekly method always better than the standard bi‑weekly conversion?
Accelerated bi‑weekly often reduces total interest and shortens term because it effectively applies an extra full monthly payment each year. However, actual impact depends on APR, term, and any recurring extra payments. Use both modes in the tool to compare.
Do results match my lender statement exactly?
This tool provides numerical estimates using standard amortization formulas. Lenders may use day‑count conventions, fees, rounding rules, or different APR definitions that affect exact payment schedules. Use outputs for planning and verify final payoff amounts with your lender.
How should I enter extra payments?
Enter extra_payment as the additional amount you plan to pay each scheduled payment (for example, additional principal each bi‑weekly or monthly payment). The calculator assumes the extra is applied to principal at each scheduled payment.
What accuracy and limits should I expect?
Formulas assume constant APR and fixed scheduled payments with compound interest per period. They do not include origination fees, prepayment penalties, or changes in interest rate. For regulatory or audit use, confirm with lender statements and consider a full amortization schedule exported and reconciled.
Sources & citations
- NIST Special Publication – Good Practices for Numerical Calculations — https://www.nist.gov/publications
- ISO/IEC numerical software and testing best practices — https://www.iso.org
- IEEE guidelines for floating point arithmetic and numerical stability — https://www.ieee.org