How this number is made
A term loan for a business is principal, a rate, and a number of months. A line of credit that you draw and repay is not this page.
- Amount financed is after the down payment and before a fee you pay in cash.
- The rate is the rate in the note. A promotional rate that expires is not this page.
Formula
Payment = P × r(1+r)^n ÷ ((1+r)^n − 1), with r = APR ÷ 12.
Worked example
With the figures already in the form, monthly payment is $1,593.53.
Questions
Why is this its own page?
This is a fully amortizing term loan. A revolving line, a merchant cash advance, or a loan with a balloon is a different contract.
Are fees included?
Only if you added them to the amount financed. A fee paid in cash is a cost, but it does not change this payment.