Business Loan Calculator

Business Loan Calculator

Business loans provide capital for operations, equipment, expansion, or working capital needs.

What This Calculator Shows

• Monthly Payment: Your expected payment amount based on loan terms
• Total Interest: The cost of borrowing over the loan lifetime
• Amortization Schedule: How payments split between principal and interest
• Payment Breakdown: Visual representation of your loan costs

How to Calculate

1. Enter your loan amount 2. Input the interest rate (APR) 3. Select the loan term 4. Review your payment details and total costs

Key Considerations for Business Loan

• Compare offers from multiple lenders before committing
• Understand all fees including origination, closing costs, and prepayment penalties
• Consider how rate changes might affect your payments (for variable rates)
• Factor in your overall financial goals and debt-to-income ratio

Business lending prices on the business, not just the borrower — though for anything under a few million, a personal guarantee usually comes with it.

Source	Rate	Speed	Notes
Bank term loan	7–11%	Weeks	Cheapest; needs 2 years of accounts
SBA 7(a)	Prime + 3–6%	30–90 days	Government-backed, lower down payment
Online lender	15–40%	Days	Fast and expensive
Merchant cash advance	40–200% APR	Hours	Priced as a "factor rate" to obscure the APR

Merchant cash advances quote a factor rate — "repay 1.3× over 6 months" — which sounds like 30% and is an APR near 100%, because repayment is daily against receipts. Always convert a factor rate to APR before comparing.

Expect a personal guarantee, a UCC lien on business assets, and covenants on revenue or debt service coverage.

The Numbers This Page Opens With

The calculator above starts at $100,000 over 7 years at 9%, which is representative for this product:

Monthly payment	$1,609
Total repaid	$135,148
Total interest	$35,148
Interest as a share of principal	35%

Change any input above and every figure recalculates. The amortisation formula behind it:

`` M = P × [ r(1+r)^n ] / [ (1+r)^n − 1 ]

P = principal, r = monthly rate (annual ÷ 12), n = number of payments ``

Before You Sign

• Compare APR, not the rate. APR includes origination and points; the rate does not.
• Ask about prepayment penalties. They turn a plan to pay early into a fee.
• Rate-shop inside 14 days. Credit scoring models treat multiple mortgage or auto

enquiries in that window as one enquiry.

• Check whether the payment includes escrow. A mortgage quote without taxes and insurance

understates the real monthly cost by hundreds.

Where the Money Goes

On $100,000 at 9% over 7 years, paying $1,609 a month:

Point	Principal repaid	Interest paid	Balance
Year 1	$7,054	$5,817	$92,946
Year 2	$19,456	$14,331	$80,544
Year 4	$42,218	$25,356	$57,782
Year 5	$68,847	$32,514	$31,153
Year 7	$100,000	$35,148	$0

Early payments are mostly interest. That is not a fee structure — it is arithmetic: interest accrues on the outstanding balance, which starts at its largest. It is also why an extra payment made early saves far more than the same payment made late.

What a Rate Change Costs

Rate	Monthly	vs 9%	Total repaid
8.00%	$1,559	-$50	$130,924
8.50%	$1,584	-$25	$133,026
9.00%	$1,609	—	$135,148
9.50%	$1,634	+$25	$137,289
10.00%	$1,660	+$51	$139,450

Half a percentage point moves the monthly payment by $25 and the total by $2,141. Shopping three lenders usually beats any amount of negotiating on price.