Calculate monthly payments, total interest, and amortization schedules for franchise loans. Compare different loan amounts, terms, and interest rates to find the best financing option.
Typical rates: 9.5% - 15.5%
Connect with franchise lending experts who can help you find the best rates and terms for your specific situation. Get personalized quotes from multiple lenders.
Franchise loan payments are calculated using the standard loan payment formula that considers:
Several factors influence your franchise loan payment amount:
Consider making bi-weekly payments instead of monthly. This results in 26 payments per year (equivalent to 13 monthly payments), which can significantly reduce your total interest and shorten your loan term.
Our calculator uses the standard loan payment formula (PMT) used by banks and lenders. Results are highly accurate for principal and interest calculations. However, actual loan payments may include additional costs like PMI, taxes, insurance, or fees.
The interest rate is the cost of borrowing money, while APR (Annual Percentage Rate) includes the interest rate plus additional fees and costs. APR gives you a more complete picture of the loan's true cost. Always compare APRs when shopping for loans.
Shorter terms mean higher monthly payments but less total interest paid. Longer terms mean lower monthly payments but more total interest. Choose based on your cash flow needs and total cost tolerance. Most franchise owners prefer 5-7 year terms for equipment and 7-10 years for expansion.
Most franchise loans allow early payoff, but some may have prepayment penalties. Check your loan terms before making extra payments. Early payoff can save significant interest, especially in the early years when more of your payment goes toward interest.