Business Loan Calculator
See payment, interest, and payoff timeline before you borrow. Calculate your monthly payment and total loan cost with optional extra payments and fees.
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Frequently asked questions
What inputs are needed for the business loan calculator?
You need to enter the loan amount, annual interest rate (APR), and loan term in months or years. Optional inputs include extra payment frequency, extra payment amount, origination fee percentage, and other fees to get a more accurate calculation.
Is APR the same as interest rate?
APR (Annual Percentage Rate) includes the interest rate plus any fees or additional costs associated with the loan. The nominal interest rate is just the base rate without fees. APR gives you a more accurate picture of the total cost of borrowing.
How do extra payments affect my loan?
Making extra payments reduces your principal balance faster, which means you'll pay less interest over the life of the loan and pay it off sooner. Even small extra payments can save thousands in interest and shorten your loan term significantly.
What is an origination fee?
An origination fee is a one-time charge by the lender for processing your loan application. It's typically 1-5% of the loan amount and is either deducted from the loan proceeds or added to the total amount you owe.
Can I export an amortization schedule?
Yes, you can view a detailed amortization schedule showing how each payment is split between principal and interest over the life of the loan. This helps you understand exactly how your loan balance decreases over time.
Are the results financial advice?
No, this calculator provides informational estimates only and is not financial, legal, or tax advice. Always consult with a qualified financial advisor or accountant before making borrowing decisions for your business.
What types of business loans can I calculate?
This calculator works for most business loan types including term loans, SBA loans, equipment financing, lines of credit, and commercial real estate loans. Simply enter the loan terms provided by your lender.
How is the monthly payment calculated?
The monthly payment is calculated using the standard amortization formula that accounts for the loan amount, interest rate, and term length. The formula ensures you pay the same amount each month while the split between principal and interest changes over time.
What's a good interest rate for a business loan?
Business loan interest rates typically range from 4% to 13% for traditional bank loans, though rates vary based on your credit score, business history, loan amount, and term. SBA loans often have lower rates (6-9%), while alternative lenders may charge 10-30% or more.
Should I choose a shorter or longer loan term?
Shorter terms mean higher monthly payments but less total interest paid. Longer terms offer lower monthly payments but cost more in interest over time. Choose based on your cash flow needs and how quickly you want to be debt-free.