APR Calculator

Calculate the estimated cost of your working capital loan

At Breakout, we emphasize the importance of understanding and comparing costs across financing options. APR is an effective tool for measuring cost when comparing similar products, but may not always be applicable to all types of financing. Educating borrowers on other cost metrics is important in order to make informed decisions when considering different financing solutions. Leverage our calculator to be empowered with the knowledge needed to control your financial destiny.

  • As you evaluate small business funding options, you're likely to come across both terms. The interest rate only includes the interest percentage you will be charged for borrowing money. APR stands for annual percentage rate, and represents the annual cost of the loan expressed as a percentage over the term of the loan and includes all fees associated with the loan, as well as the frequency of the payments.

  • The cost of capital calculation is based on a range of criteria with the four biggest factors being industry, time in business, personal credit score and cash flow. For instance, a medical practice that has been in business for ten years and generates consistent annual sales, which has an owner with a credit score of 700, is much more likely to secure a lower cost of capital than a retail startup business (less than one year old) with monthly revenues that fluctuate.

  • An origination fee, sometimes referred to as a closing fee, is a fee charged by a lender to cover the cost of processing and dispersing a loan. The fee is normally expressed as a percentage of the total loan amount (i.e., 2.5%), though it can also be a flat fee. The money is normally deducted from your loan prior to disbursement. As an example, if you have a $20,000 loan with an origination fee of 2.5%, the lender will normally deduct $500 before providing the remaining $19,500.