Business Loan Calculator
Work out the monthly payment and total cost of a business term loan, including what an origination fee adds to the real rate. Or start from the payment you can afford and see how much you could borrow.
Use the rate on your offer. Rates depend on your time in business, revenue, credit and the term.
Taken from the loan when it is paid out. Leave at 0 if there is none.
An estimate for planning only, not an offer of credit. Your actual rate, terms and payment depend on your business and the lender. Nothing you enter is saved or sent.
See your real numbersYear-by-year breakdown
| Year | Balance paid | Interest paid | Balance left |
|---|
Example
A $100,000 loan at 11% APR over three years costs $3,274 a month. Over the 36 payments you pay $17,859 in interest. Add a 3% origination fee, which comes out of the money you receive, and the real rate rises to about 13.1%, because you pay interest on $100,000 but only get $97,000.
How the payment is worked out
Most business term loans are repaid in equal monthly payments. Each payment covers that month's interest first and the rest goes to the balance, so early payments are mostly interest and later ones are mostly balance. The yearly table under the calculator shows that split.
The calculator uses the standard loan payment formula: payment = amount × r ÷ (1 − (1 + r)−n), where r is the monthly rate (APR ÷ 12) and n is the number of months.
Fees change the real cost
Two loans with the same interest rate can cost very different amounts. An origination fee is usually taken from the loan when it is paid out, so you pay interest on money you never receive. The calculator shows the real APR with the fee included, which is the fairest number to compare offers with.
Shorter term or lower payment?
A longer term lowers the monthly payment but raises the total interest. A shorter term costs less overall but takes more of your monthly cash flow. A good test before you sign: can your business cover the payment in a slow month, not just an average one?
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Frequently asked questions
How is a business loan payment calculated?
With the standard amortization formula: the loan amount, the monthly interest rate and the number of months give one fixed payment. Each payment covers that month's interest first, and the rest reduces the balance.
What is the difference between the interest rate and the APR?
The interest rate is what you pay on the balance. The APR also includes fees such as an origination fee, so it shows the full yearly cost and is the better number for comparing offers.
How much can my business borrow?
Lenders look at revenue, cash flow, time in business, credit and existing debt. A practical starting point is the payment your business can comfortably make every month. Choose "How much I can borrow" in the calculator to turn that payment into a loan amount.
Does using the calculator affect my credit?
No. The calculator runs in your browser. Nothing you enter is saved or sent anywhere.
This calculator gives estimates for planning only. It is not an offer of credit, and the results are not financial advice.
Ready to see your real numbers?
Tell us what your business needs and review available structures with a financing specialist.