Term-Out Loan Calculator
Convert revolving debt into scheduled term debt
When a business line of credit stops revolving and becomes permanent debt, lenders may term out the balance. This calculator estimates the new payment, annual debt service, balloon risk, and DSCR impact.
- ✓Turns a line of credit balance into a term-loan payment
- ✓Supports amortization longer than maturity with a balloon balance
- ✓Compares current LOC payment impact against proposed term debt
- ✓Shows DSCR before and after the term-out
Frequently Asked Questions
What does it mean to term out a line of credit?
A term-out converts a revolving balance into a term loan with scheduled payments, often because the line is no longer being used for short-term working capital.
Can a term-out loan have a balloon?
Yes. A lender may use a longer amortization for payment sizing but require the remaining balance to mature sooner.
How does a term-out affect DSCR?
It replaces the current line payment with fixed annual debt service. DSCR improves or worsens depending on the old payment, new rate, term, and amortization.
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This tool is for educational purposes only. Results do not constitute a loan offer, pre-qualification, or guarantee of financing. Consult a licensed financial professional for advice specific to your situation.