Quarrymoor Financial, a small-business funding service in Kingman, Arizona, offers this loan payment calculator for Mohave County, AZ hotel and motel owners pricing a purchase, renovation or refinance. Three inputs (amount, rate, months) give the monthly payment, total interest and total repaid. It is an estimate; partners make credit decisions and set rates and terms.
What this motel loan widget computes
It is a standard commercial loan payment calculator for a fully amortizing loan. Three inputs, the amount borrowed, the annual interest rate and the term in months, produce three outputs: the monthly payment, the total interest over the term and the total repaid. It works for any term loan, not only lodging.
It does not produce an amortization schedule month by month, model a balloon payment, add fees or compute occupancy or revenue figures. Those are covered by hand below.
Using it for a hotel or motel
Renovation
Enter the total of the contractor bids for the work you plan to finance. Run it at two or three terms to see how a longer term lowers the payment but raises total interest.
Purchase
Enter the amount you expect to borrow, not the full price; a purchase usually includes a down payment from the buyer. Real estate, the business and FF&E may be financed separately, so run each piece.
Rate
Use a rate from an actual offer if you have one. Without an offer, try a range of rates to see the sensitivity, and treat the result as an estimate only.
A made-up motel example
Suppose a motel owner enters $120,000 over 120 months. At a rate of zero, the payment is simply $1,000 a month and total interest is nothing, which shows the principal share on its own. Every rate above zero adds interest on top; the calculator shows how much. Shortening the term to 84 months raises the zero-rate payment to about $1,429 but leaves less time for interest to accrue. These are made-up inputs to show how the outputs move, not a quote.
By hand: an amortization schedule and a balloon
A business loan amortization schedule lists each payment's interest and principal. To build one row by hand: multiply the remaining balance by the annual rate divided by 12 to get that month's interest, subtract it from the payment to get the principal paid, and subtract that principal from the balance. Repeat for each month.
For a balloon structure, the final balance after the scheduled payments is what remains on the last row of a schedule built with the balloon's monthly payment. Ask the partner for the balloon amount in writing.
Limits of a calculator estimate
- Partners set the actual rate, term and fees
- Fees taken from the loan proceeds reduce what reaches your account
- Some loans charge for early payoff; the calculator assumes none
For the full picture on lodging funding, see hotel and motel business loans in Kingman, AZ and term loans for purchases and renovations. Other tools and checklists are in the guides section.
By Quarrymoor Financial · Updated
