Kabbage APR Calculator
Kabbage offers working capital loans to small businesses.They’ve made it quick and easy to get up a line of credit up to $250,000. While the rates on Kabbage’s loans are not the lowest in when it comes to small business financing options, their lines of credit come with no hidden fees. There’s no origination fee, and there’s no prepayment penalty compared to merchant cash advances and daily debit loans.
We’ve created our Kabbage APR calculator so you can understand the cost of your loan as compared to other available financing options. Our Kabbage calculator is specifically for their 6-month working capital loan, however Kabbage now offers a 12-month working capital option as well.
A 6-month term loan from Kabbage is structured as follows. Say you borrow $X dollars. Kabbage will assess your risk and determine a risk premium of Y%. Y% will be between 1% – 10%. You will pay (1/6 + Y%) * $X for the first two months and (1/6 + 1%) * $X for the next four months.
The total financing cost will be (2 * Y + 4)% of $X. It’s a bit more complicated to calculate the APR. The following calculator makes it a breeze to calculate your Kabbage APR to compare across other loan products.