The calculator computes level monthly payments only. The sections work by hand an extra payment plan on a service van, a balloon on a lab analyzer, a level versus balloon comparison on a veterinary clinic's surgery equipment and extra payments that shrink a balloon on an excavator. Every example uses invented figures.
Extra payments on a Madison County, KY plumbing contractor's service van loan: the months and interest they take off
Illustration only, invented figures: a plumbing contractor finances a service van for $46,900 at a 10.15% annual rate over 60 months. The invented payment is $999.95, and 60 such payments total $59,997.00, of which $13,097.00 is interest.
Adding an invented $350 of principal to every payment clears the van in 42 months instead of 60, 18 fewer, and brings the interest down to $8,867.14 in this invented case, $4,229.86 less.
The worksheet logic is the same for practices and shops: an extra amount goes against principal, so each later month's interest is figured on a smaller balance and the loan ends early. The calculator on this page gives the starting payment for any amount, rate and term; the extra-payment effect has to be worked month by month, as in this invented case.
Before planning extra payments, ask whether the agreement applies them to principal and whether a prepayment charge applies. The partner's agreement decides both, and the calculator on this page cannot show either.
Equipment loan calculator with balloon: a Richmond, KY physician office's lab analyzer and its final lump sum
A balloon loan sets a smaller level payment and leaves a large sum due with the last payment.
Illustration only, invented figures: a physician office finances a $38,750 lab analyzer at a 9.85% annual rate over 48 months with a $9,000 balloon. In this invented example each of the 48 payments is $826.27, and the balloon due with the last one is $9,000.01 after rounding; the invented total is $48,660.97, with $9,910.97 of interest.
The calculator on this page cannot show a balloon. Running the full $38,750 over 48 months at the same invented rate gives a level payment of $980.01, which shows the monthly difference the balloon makes.
Commercial loan calculator with balloon, set against level payments on a Richmond, KY veterinary clinic's anesthesia machine and surgical table
| Structure | Monthly payment | Final balloon | Total paid | Interest |
|---|---|---|---|---|
| Level payments | $906.86 | None | $32,646.96 | $5,046.96 |
| 20% balloon | $777.24 | $5,519.90 | $33,500.54 | $5,900.54 |
In this invented comparison the balloon lowers each payment to $777.24, $129.62 under the level figure, while its interest runs $853.58 higher, because more of the principal stays outstanding for the whole term. The clinic also needs $5,519.90 on hand, or a plan for it, when the last invented payment comes due.
The level row is what the calculator on this page computes. For loans sized to one large cost, the business term loans page has more worked cases.
Equipment finance with a balloon, shrunk by extra payments: a Madison County, KY home builder's mini excavator
Construction counted 181 employer establishments in Madison County, KY in 2023, with $75.8 million of annual payroll (County Business Patterns, NAICS 23).
Illustration only, invented figures: a home builder finances a $58,400 mini excavator at a 9.45% annual rate over 60 months with a $12,000 balloon. The invented payment is $1,067.85, and the balloon due at the end is $12,000.21 after rounding.
Paying an invented $150 extra with every payment shrinks that final balloon to $551.97 and the total interest from $17,671.21 to $15,222.97 in this invented case, $2,448.24 less. Whether extra payments reduce the balloon is set by the agreement, so the builder can ask before signing.
By Ledgecrest Lending ยท Updated
