Small business owners and entrepreneurs can use the financing for start-up costs or to grow their business, but you need to know the exact cost you’ll pay lenders. Or maybe you want to gauge your return on investment on a potential project. That’s where a small business calculator comes in.
The experts at Nav have rounded up the best calculators for small businesses that are available to you for free. Keep reading to learn how to use business calculators to give you better control of your finances.
Running a small business is hard enough – using a business calculator takes a lot of the guesswork out of calculating some business operations. You can find a business calculator that can help you figure out exactly how much you’ll pay on small business loans you’re considering or decide which project to pursue.
Terminology is not always straightforward when using a business calculator. So here are some terms you might find useful to know:
- Amortization: On a loan, an amortization schedule is basically the monthly payments you make on the loan to reduce its size over time. Most spreadsheets and accounting software can calculate depreciation for you.
- Annual Percentage Rate (APR): APR is another way of saying interest rate. However, it is also generally more accurate than an interest rate because it includes the cost of fees.
- Repayment period: A repayment term corresponds to the duration of a loan or the date on which it must be repaid. For example, you may have a two-year repayment period on a loan, which means it must be fully repaid after two years.
- Capital expenditure: The cost of purchasing, upgrading or maintaining a physical business asset, such as equipment or property.
- Weighted average cost of capital: When looking at the discounted cash flow calculator, the weighted average cost of capital is one way to determine how much it costs to invest in a business. Or, in other words, it’s a way of determining the value of a business.
You may not need to know all of these terms, as not all of them apply to every calculator. And while business calculators can help you with the calculations, turn to accounting software or a finance professional if you’re unsure. It’s best to be confident in the financial health of your business.
Business Financial Calculators
Here are the best business loan calculators you can use to make running your business smoother and more profitable.
Business Cash Calculator
Cash flow is the difference between money coming in and money going out. It is one of the most essential metrics to use to be able to run your business smoothly and understand the value of your business. Cash flow sounds very simple, but it can get complicated, which is why using a calculator can be so helpful.
Luckily, Nav has added some new features to its cash flow tool, like projected monthly net income and month-over-month net income change. Nav’s cash flow tool offers actionable insights you can’t get elsewhere – and all it takes is you signing up for Nav and connecting your business checking account. We will do the heavy lifting for you to calculate your cash flow details.
Total Interest Paid on Loan Calculator
The companies’ interest rate calculator you use to determine how much interest you’ll pay depends on the type of financing you take out. If you’re looking to get a loan from an alternative lender or online, check out OnDeck’s APR calculator. This calculator can help you with loans that require daily payments.
If you’re looking to try out invoice financing, you can also check out the helpful invoice financing calculator.
For more traditional term loans, Nav’s Term Loan APR Calculator may be helpful. Simply enter your loan amount, interest rate, fees, number of years or months of repayment period, and monthly service charge. The calculator will show you the total cost of funding, along with your APR. When applying for a small business loan, first make sure your credit is up to snuff. To get started, check out Nav’s guide on how to establish business credit.
loan repayment calculator
Nav’s Term Loan APR Calculator can also tell you what monthly payment to expect. Once you’ve entered the total amount borrowed and the interest rate, along with the fees and length of your repayment period, you can instantly see what you’d pay each month, as well as how much you’ll pay over time. time. This tool can be useful before you borrow to make sure you can pay your monthly payment before you apply. You can also use these calculators for personal loans, if that is helpful to you.
Discounted Cash Flow Calculator
Discounted cash flow is another way to measure the value of a business, and it’s mostly used by real estate or other investors to see if a potential investment is worth it. The calculations can get complicated, so Zion Bank offers a discounted cash flow calculator tool for just that reason. You will enter the expected annual growth of your business, the weighted average cost of capital and the number of years of cash flow you wish to include, as well as the cash flow you derive from operations and investments. It’s always a good idea to check with a financial advisor if these numbers are unclear to you.
Business Case Calculator
A break-even analysis can help you determine the volume of products or services you need to sell to “break even” with your expenses. It can also help you determine how much to charge per product. Financial services company Zoho provides a useful break-even calculator that will help you find the point where you will earn more than you spend.
Business Valuation Calculator
Knowing your business valuation helps you understand what your business is worth and how much you could sell it for, if that was something you wanted to do in the future. Nationwide has a free business valuation calculator where you enter your current operating profit, the percentage growth you expect each year, and the number of years you can expect to grow at that rate. .
You will use the ROI calculation in your business to determine the likelihood that an investment or project will earn you money. Real estate investors use this calculation before buying new investment properties, and managers can use it to see if a new project is worth pursuing.
Ameriprise Financial offers a free ROI calculator that can help you compare projects to determine which one you should pursue. You will enter the number of years, the expected rate of return, the amount you have invested since inception, and the expected inflation and tax rates. For any calculation that you are unsure of, do not hesitate to contact a financial professional.
Profit margin calculator
Profit margins tell you how much money you made on a product after removing the costs of selling your products. Gross profit margin tells you the percentage of each sale against the cost of goods sold. Figuring out profit margins can be tricky, so Shopify provides a helpful profit margin calculator that can help you price your products to maximize your profits.
Get a complete view of your company’s financial health
Business calculators can give you targeted insights into your business performance and insight into next steps. But Nav can help you get the big picture. Features like cash flow tool, actionable insights, and personalized funding recommendations – for business credit cards, business loans, and more. – allow you to analyze the overall financial health of your business and grow in a logical way. Sign up with Nav to get started today.
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