Business Loan Calculator
Calculate monthly payments, total interest, and total cost for a business loan based on amount, rate, and term.
Monthly Payment
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Total Paid
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Total Interest
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What is Business Loan Calculator?
A business loan calculator determines your monthly payment and total borrowing cost for a term loan. Whether you're financing equipment, real estate, working capital, or expansion, this tool helps you quickly evaluate affordability and compare offers from different lenders by showing the true cost of the loan over its full term.
How to use
- 1 Enter the loan amount you need to borrow.
- 2 Enter the annual interest rate quoted by the lender.
- 3 Enter the loan term in years.
- 4 Monthly payment, total amount paid, and total interest are displayed instantly.
- 5 Compare different rate and term combinations to find the most cost-effective option.
Formula
Example calculation
$150,000 business loan at 7.5% for 5 years: r = 0.075/12 = 0.00625, n = 60. Monthly payment ≈ $3,002. Total paid: $180,120. Total interest: $30,120.
Frequently asked questions
What credit score do I need for a business loan?
Traditional bank loans typically require a personal credit score of 680+. SBA loans generally require 640+. Online lenders may approve scores as low as 500–550 but at significantly higher interest rates. Strong business financials can offset a lower personal score.
What is the difference between APR and interest rate?
The interest rate is the cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate plus fees (origination fees, closing costs), giving a more complete picture of the loan's true annual cost.
What are typical business loan interest rates?
SBA 7(a) loans: 10%–14%. Bank term loans: 6%–12%. Online lenders: 10%–40%+. Rates depend heavily on creditworthiness, business age, revenue, and collateral. This calculator works with whatever rate you've been quoted.
Should I choose a shorter or longer term?
Shorter terms have higher monthly payments but lower total interest. Longer terms ease cash flow pressure but significantly increase total borrowing cost. Choose based on your cash flow capacity and how the loan asset generates revenue.
What is a prepayment penalty?
Some lenders charge a fee if you pay off the loan early, since they lose expected interest income. Always check for prepayment penalties before signing — they can negate the savings of paying off debt ahead of schedule.