Does this calculator work for SBA loans?

Yes, for the payment math. SBA 7(a) and 504 loans with fixed rates and regular amortization follow the same formulas, though actual terms, fees, and rate resets can vary. Always confirm specifics with your lender.

Can I model lines of credit or daily-payment loans with this?

Not precisely. This tool is designed for fixed-rate, monthly-payment term loans. Lines of credit, factor-rate advances, and daily/weekly repayment products require different models.

Does this include origination fees and closing costs?

Only if you manually include financed fees in the loan amount. Fees paid upfront from cash are not modeled in the payment or total interest.

Will my lender’s quoted payment match this exactly?

Most lenders use the same amortization math, but small differences can come from rounding, payment timing, and whether they include financed fees. Treat this as a close estimate and compare it to any official amortization schedule you receive.

finance calculator

Business Loan Calculator

Estimate monthly payments, total interest, and total cost for a fixed-rate business term loan so you can test scenarios before borrowing.

Results

Estimated monthly payment: $2,052 USD
Total interest paid: $23,099 USD
Total paid over life of loan: $123,099 USD

Overview

Before you commit to a business term loan, it helps to see exactly how the payment will affect cash flow and how much interest you’ll pay over the life of the loan. This business loan calculator uses standard amortization math to turn loan amount, APR, and term into a clear monthly payment, plus total interest and total cost. That makes it easier to compare offers, plan for debt service, and decide whether a given loan really supports your growth plan.

How to use this calculator

Enter the business loan amount you are considering. Include any financed fees if your lender rolls them into the balance.
Enter the loan’s APR. For multiple offers, plug in each APR to see how much the rate changes your payment and total interest.
Enter the term length in years (for example, 3, 5, or 7 years).
Review the estimated monthly payment, total interest, and total amount paid over the full term.
Adjust loan amount, APR, and term until you find a combination that fits your projected cash flow and risk tolerance.

Inputs explained

Loan amount: The principal you plan to borrow for your business, including any fees that will be financed into the loan balance rather than paid upfront.
Interest rate (APR): The annual percentage rate quoted for the loan, expressed as a percentage. This reflects the yearly cost of borrowing before any fees not embedded in the rate.
Term length: How long you have to repay the loan, in years. Shorter terms increase the payment but reduce total interest; longer terms lower the payment but increase total interest and may keep you leveraged longer.

Outputs explained

Estimated monthly payment: The fixed payment your business would owe each month over the full term, assuming a fixed rate and on-time payments.
Total interest paid: The sum of all interest charges over the life of the loan—this is the extra cost of borrowing beyond the principal you receive.
Total paid over life of loan: The total of all payments (principal plus interest) you will make from origination until the debt is fully repaid.

How it works

Most small business term loans behave like other fixed-rate installment loans: you receive a lump sum and repay it in equal monthly payments over a set number of years.

The calculator converts your annual percentage rate (APR) to a monthly rate by dividing by 12, and converts your term in years into the total number of monthly payments (years × 12).

If APR is greater than zero, it applies the standard amortization formula to compute the level monthly payment that fully pays off the loan and interest by the end of the term.

If APR is 0%, the model simplifies to principal divided by the number of months, since there is no interest to accrue.

Once the monthly payment is known, total paid is just payment × number of months, and total interest is total paid minus the original loan amount.

This calculation focuses on principal and interest only and assumes a fixed rate with no balloon payment at the end.

Formula

If APR > 0:
  r = APR ÷ 100 ÷ 12  (monthly rate)
  n = TermYears × 12
  Payment = P × [r(1 + r)^n] ÷ [(1 + r)^n − 1]
If APR = 0:
  Payment = P ÷ n
Where P is the loan amount and n is the number of monthly payments.
Total paid = Payment × n
Total interest = Total paid − P

When to use it

Comparing business loan offers from banks, credit unions, and online lenders to see which combination of rate and term best fits your cash flow.
Testing whether a loan used for inventory, equipment, or marketing will leave enough margin after debt service.
Estimating how much extra interest you will pay if you extend the term to lower the monthly payment.
Validating lender quotes by cross-checking their payment numbers against your own calculation.
Stress-testing your business plan by modeling best-case and worst-case rate scenarios.

Tips & cautions

Look at total interest in addition to the monthly payment—lower payments over much longer terms can quietly increase the overall cost of capital.
If your lender charges an origination fee that is financed, add it to the loan amount to capture its effect on your payment and total interest.
Consider pairing this calculator with a cash-flow forecast so you can see how the loan payment lines up with seasonality and growth plans.
If you expect to prepay aggressively, use this as a baseline and then model extra principal payments with a payoff or amortization tool.
When comparing offers, pay attention to compounding conventions and any prepayment penalties that might change your effective cost.
Assumes a fixed-rate, fully amortizing term loan with equal monthly payments and no balloon payment.
Does not model lines of credit, merchant cash advances, daily or weekly repayment schedules, or factor-rate products.
Does not include fees unless you manually add financed fees into the loan amount.
Does not account for early payoff, changing rates, or special covenants that may affect real-world cash flows.

Worked examples

$100,000 working capital loan at 8.5% over 5 years

LoanAmount P = $100,000; APR = 8.5%; TermYears = 5 → n = 60.
Monthly rate r ≈ 0.085 ÷ 12 ≈ 0.007083.
Monthly payment falls in the low-$2,000s, with total interest well into five figures over the full term.

$50,000 equipment loan at 6.5% over 7 years

P = $50,000; APR = 6.5%; TermYears = 7 → n = 84.
Monthly payment comes out in the high-$700s, with total interest reflecting the longer repayment period.

0% APR vendor financing repaid over 3 years

P = $30,000; APR = 0%; TermYears = 3 → n = 36.
Because APR is 0, Payment = 30,000 ÷ 36 ≈ $833.33 per month.
Total paid is $30,000 and total interest is $0—assuming truly interest-free terms with no hidden fees.

Deep dive

Use this business loan calculator to estimate monthly payments, total interest, and total cost for any fixed-rate small business term loan.

Enter loan amount, APR, and term to see how a new loan would fit into your company’s cash flow before you sign.

Compare multiple offers quickly so you can choose financing that supports growth without stretching your budget too thin.

FAQs

Does this calculator work for SBA loans?: Yes, for the payment math. SBA 7(a) and 504 loans with fixed rates and regular amortization follow the same formulas, though actual terms, fees, and rate resets can vary. Always confirm specifics with your lender.
Can I model lines of credit or daily-payment loans with this?: Not precisely. This tool is designed for fixed-rate, monthly-payment term loans. Lines of credit, factor-rate advances, and daily/weekly repayment products require different models.
Does this include origination fees and closing costs?: Only if you manually include financed fees in the loan amount. Fees paid upfront from cash are not modeled in the payment or total interest.
Will my lender’s quoted payment match this exactly?: Most lenders use the same amortization math, but small differences can come from rounding, payment timing, and whether they include financed fees. Treat this as a close estimate and compare it to any official amortization schedule you receive.

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This business loan calculator provides general estimates based on standard amortization formulas and does not capture all loan structures, fees, or covenants. It is not a commitment to lend or financial advice. Always review official loan documents and consult with a qualified advisor before taking on business debt.