Business Loan Calculator
Estimate your monthly payment, total interest, and full amortization schedule for a business loan. Adjust the amount, rate, term, and fees to see your true cost of borrowing update instantly.
Amortization schedule (by year)
See how each year's payments split between principal and interest, and how your balance falls over time.
| Year | Principal paid | Interest paid | Total paid | Remaining balance |
|---|
How the business loan calculator works
This tool uses the standard loan amortization formula lenders use to build a repayment schedule:
where P is the amount financed, r is the periodic interest rate (annual rate ÷ payments per year), and n is the total number of payments.
Each payment first covers the interest that accrued that period; whatever is left reduces your principal balance. Early payments are mostly interest, and later payments are mostly principal — which is why paying extra early saves the most.
What affects your business loan payment
- Loan amount & down payment — a larger down payment lowers the amount financed and every payment after it.
- Interest rate (APR) — even one point changes total interest meaningfully over a multi-year term.
- Term length — a longer term lowers the monthly payment but raises total interest paid.
- Origination fees — fees are financed into the loan, so they raise both the payment and your true cost.
- Payment frequency — paying weekly or bi-weekly slightly reduces total interest because principal drops faster.
Tips to lower your total cost
- Compare the APR, not just the rate — APR includes fees and reflects true cost.
- Shorten the term if your cash flow can handle a higher payment.
- Check whether your DSCR supports the payment before you apply.
- Ask lenders about prepayment penalties before committing to extra payments.
Frequently asked questions
How is a business loan monthly payment calculated?
The payment uses the standard amortization formula: Payment = P × r ÷ (1 − (1 + r)−n), where P is the amount financed, r is the periodic interest rate, and n is the total number of payments. Each payment covers accrued interest first, and the rest reduces principal.
What interest rate should I expect on a business loan?
Rates vary widely by lender and profile. SBA and bank term loans often range from about 7% to 15% APR, while online and short-term lenders can be much higher. Always compare the APR, not just the rate, because APR includes fees.
Does this calculator include fees?
Yes. You can add an origination fee as a percentage. Fees are added to the amount financed so the payment and total cost reflect the true out-the-door cost of the loan.
Is a business loan calculator accurate?
It gives a precise estimate using standard amortization math. Your actual payment may differ slightly based on the lender's compounding method, exact fee structure, and any variable-rate terms.
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This calculator is for educational and informational purposes only and does not constitute financial, legal, or lending advice. Estimates are based on the values you enter and standard amortization math. Confirm all terms with a qualified lender before making decisions.