Back to calculator
Business & eCommerceGenerated accuracy model review: 2026-05-06
Business Loan Calculator accuracy and testing
This page documents how Calwarden builds trust for this calculator: source notes, regression-style default tests, limitations, assumptions, unit handling, rounding, and visible change history.
Formula source
- Uses the standard amortization formula to determine fixed monthly payments. It also sums total interest payments to show the cost of borrowing. **M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]**
Test cases
Default input regression check
Generated from the checked-in default inputs and calculate function.
Inputs
- Loan Amount: $100,000
- Interest Rate: 7.5%
- Term (Years): 10 Years
- Origination Fees: $0
Expected outputs
- Estimated Monthly Payment: $1,187.02
- Total Interest Paid: $42,442.12
- Total Cost of Loan: $142,442.12
Known limitations
- Assumes a monthly repayment schedule. Does not support Daily/Weekly payments often found in Merchant Cash Advances (MCAs).
Assumptions
- This calculator assumes a fixed-rate loan with equal monthly payments over the full term.
- Fees are added to the overall borrowing cost, but they do not change the amortized monthly payment in this model.
- The tool does not model balloons, variable rates, daily repayment schedules, or prepayment penalties.
Unit handling
- Loan Amount accepts values in $.
- Interest Rate accepts values in %.
- Term (Years) accepts values in Years.
- Origination Fees accepts values in $.
- Estimated Monthly Payment is displayed as currency.
- Total Interest Paid is displayed as currency.
- Total Cost of Loan is displayed as currency.
Rounding rules
- Number displays use up to 2 decimal places in the calculator UI.
- Currency outputs are displayed with standard US dollar formatting.
Version history
1.0.0 - 2026-05-06
Generated accuracy and testing page from the current business-loan-calculator calculator definition.
Change log
2026-05-06
Published default regression test documentation and metadata fallbacks for Business Loan Calculator.
Calculator transparency
Accuracy pages are generated from checked-in calculator definitions and can be upgraded with curated review metadata over time.