Cernarus

Business Loan APR Calculator with Bi-Weekly Payments

This calculator computes periodic payments, total interest, and effective annual rates for business loans when payments are made bi‑weekly or at any selected frequency. It also provides a comparison between monthly and bi‑weekly schedules to show potential interest savings.

Use the tool to estimate cashflow implications and to compare payment frequency options. The results are theoretical estimates and assume fixed APR, fixed payment amounts, no prepayments, and no changing balances other than scheduled amortization.

Updated Nov 6, 2025

Given loan amount, APR, term and payment frequency, compute the periodic payment, total payment, total interest and the effective annual rate.

Inputs

Results

Updates as you type

Periodic payment (by chosen frequency)

$901.94

Total amount paid

$117,252.52

Total interest paid

$17,252.52

Effective annual rate (EAR)

6.71%

OutputValueUnit
Periodic payment (by chosen frequency)$901.94currency
Total amount paid$117,252.52currency
Total interest paid$17,252.52currency
Effective annual rate (EAR)6.71%%
Primary result$901.94

Visualization

Methodology

Periodic payments are computed using the standard amortizing loan formula: payment = (principal * r) / (1 - (1 + r)^(-n)), where r is the periodic interest rate and n is the total number of payments.

Effective annual rate (EAR) is calculated by compounding the periodic rate: EAR = (1 + r)^(periods per year) - 1.

When comparing frequencies, the calculator applies the same nominal APR and term to both schedules and computes payments and total interest using the amortization formula for each periodic rate and period count.

Worked examples

Example 1: $100,000 loan, 6.5% APR, 5 years, bi‑weekly (26) → calculator returns bi‑weekly payment, total interest and EAR.

Example 2: Same loan compared monthly (12) vs bi‑weekly (26) shows the difference in total interest and the amount saved by switching frequencies with identical APR and term.

Key takeaways

This advanced calculator provides payment schedules and totals for business loans with selectable payment frequency, focusing on bi‑weekly vs monthly comparisons. It uses standard amortization formulas and reports effective annual rates.

For legal APR disclosures, inclusion of fees, or reverse APR computation from payments, use a specialist IRR calculator or consult a qualified financial professional. Results are estimates and should be validated against lender disclosures.

Expert Q&A

Does bi‑weekly always save interest compared to monthly?

If the nominal APR and term are identical, more frequent payments (bi‑weekly vs monthly) typically reduce total interest because interest compounds less between payments. The exact savings depend on term, APR and whether the payment amounts are adjusted.

Can this tool compute the APR implied by an existing payment amount?

Computing APR from an observed payment requires solving for the internal rate that equates present value of payments and any fees to the loan principal; that is a numerical root‑finding problem (IRR). This calculator focuses on forward calculations (APR → payments). For reverse APR calculations or TIL/APR legal disclosures, use specialized IRR routines or consult a financial professional.

Are fees and prepayments included?

This model does not automatically include origination fees, closing costs, or irregular prepayments. Including fees typically requires adjusting the financed principal or running an IRR computation to produce a legal APR. See accuracy notes below.

How accurate are the results?

Results follow standard amortization mathematics used by lenders. They are estimates and do not replace lender disclosures. Small rounding differences can occur depending on how a lender defines compounding conventions, rounding rules, and handling of fees.

Sources & citations