Tool
Working Capital Loan Payment Calculator
Estimate short-term working capital loan payments, net proceeds, total borrowing cost, runway added, and how much cash gap the loan can cover.
Use working capital debt for a specific gap
A working capital loan can bridge payroll, inventory, supplier, or collection timing gaps, but it should have a repayment source. Compare this estimate with the working capital calculator, cash flow forecast calculator, and business line of credit calculator.
Working capital loan calculation
The monthly payment uses the entered principal, annual rate, and term. Net proceeds subtract the origination percentage and fixed fees from the loan amount, while total borrowing cost compares all modeled payments with the cash actually received.
With the starting inputs, a $40,000 loan at 14% for 24 months produces a payment of about $1,921. A 3% origination fee plus $300 of fixed fees leaves $38,500 of net proceeds. Against an $8,000 monthly cash shortfall, that covers about 4.8 months before considering the loan payment itself.
Loan or line of credit?
A term loan can fit a known, one-time need because the full amount is funded and amortized. A line of credit can fit repeated timing gaps because interest is generally tied to the amount drawn, but renewal, draw fees, variable rates, and repayment rules still need review.
This calculator is an estimate for planning and comparison only. Confirm fees, repayment terms, collateral, guarantees, renewal risk, and whether the loan solves a timing gap or a structural cash flow problem.
Frequently asked questions
How is a working capital loan payment calculated?
For an amortizing loan, the payment depends on principal, periodic interest rate, and number of payments. Fees reduce net cash received even when they do not reduce the amount that must be repaid.
What is the difference between loan amount and net proceeds?
Loan amount is the principal owed. Net proceeds are the cash available after origination and fixed fees. Compare repayment obligations with net proceeds when judging the real cost of the loan.
When can a working capital loan help?
It can bridge a specific, temporary gap such as inventory, payroll, or slow customer collections when there is a credible repayment source. Repeated borrowing for an ongoing operating loss signals a structural cash-flow problem.