Business Loan Calculator

Calculate monthly payments on a business loan. Free business loan calculator for small and mid-size companies.

A business loan calculator estimates the monthly payment and total interest on a small-business loan, including term loans and SBA 7(a) loans. Business term loans are usually fixed-rate and amortized like a mortgage, so the monthly payment depends on the loan amount, the annual percentage rate, and the term in months. Knowing that payment before you sign lets you judge whether the cash flow from the equipment, inventory, or expansion the loan funds will actually cover the debt service.

Use it to compare loan offers, to test a 36-month versus 60-month term, or to see how a 1-2 percentage point rate difference changes the total cost. SBA loans often carry a prime-plus margin and a maximum term set by use-of-proceeds, so run the term that matches the asset life: shorter for working capital, longer for real estate. Numbers run in your browser.

loan

Result

2,051.65

Breakdown

Total Paid
123,099
Total Interest
23,099

About Business Loan Calculator

What is business loan calculator?

A business loan calculator estimates the monthly payment and total interest on a small-business loan, including term loans and SBA 7(a) loans. Business term loans are usually fixed-rate and amortized like a mortgage, so the monthly payment depends on the loan amount, the annual percentage rate, and the term in months. Knowing that payment before you sign lets you judge whether the cash flow from the equipment, inventory, or expansion the loan funds will actually cover the debt service. Use it to compare loan offers, to test a 36-month versus 60-month term, or to see how a 1-2 percentage point rate difference changes the total cost. SBA loans often carry a prime-plus margin and a maximum term set by use-of-proceeds, so run the term that matches the asset life: shorter for working capital, longer for real estate. Numbers run in your browser.

How to use this calculator

  1. Enter your loan amount.
  2. Enter your interest rate.
  3. Enter your loan term.
  4. Click the "Calculate" button.
  5. View your result instantly — the main result is displayed prominently at the top with a detailed breakdown below it.

When to use this calculator

  • Comparing term loan offers from a bank, credit union, and online lender
  • Estimating whether new equipment cash flow covers the loan payment
  • Testing 36-month versus 60-month terms on monthly payment and total interest
  • Projecting an SBA 7(a) payment with a prime-plus rate
  • Budgeting debt service before applying for expansion financing

How the calculation works

Business term loans amortize with the same formula as any installment loan: M = P x [r(1+r)^n] / [(1+r)^n - 1], where P is the loan amount, r is the monthly rate (annual APR / 12), and n is the number of monthly payments. Total interest = (M x n) - P. For example, a $100,000 loan at 8.5% APR over 60 months: r = 0.007083, n = 60, M = 100,000 x [0.007083 x (1.007083)^60] / [(1.007083)^60 - 1] ~= $2,052 per month. Total paid = 2,052 x 60 ~= $123,120, so total interest ~= $23,120. A 36-month term raises the payment to about $3,160 but cuts total interest to roughly $13,760.

Frequently Asked Questions

How is loan interest calculated?▼
Most loans use amortized interest where each payment covers accrued interest plus a portion of principal. The formula is M = P[r(1+r)^n]/[(1+r)^n-1].
What is APR vs interest rate?▼
The interest rate is the cost of borrowing the principal. APR includes the interest rate plus fees, giving the true yearly cost of the loan.

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