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.

Finance

↵ to calculate

Business Loan Calculator — SBA Loan Monthly Payment

Calculate monthly payments, total interest, and total cost for a business loan based on amount, rate, and term.

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How to use this calculator

👉 Fill in the boxes below and your answer appears instantly — no maths needed, we do it all for you! 🎉

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In plain English — what does this do?

🏠 You want to buy something big (like a house or car) but you don’t have all the money right now. A bank gives you the money today, and you pay it back little by little every month. This tool tells you ‘how much do I pay each month?’

📌 Direct Answer & Summary

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.

Loan Amount ($)

Annual Interest Rate (%)

Term (years)

What is Business Loan Calculator — SBA Loan Monthly Payment?

How to use it

1️⃣ Enter the loan amount you need to borrow.
2️⃣ Enter the annual interest rate quoted by the lender.
3️⃣ Enter the loan term in years.
4️⃣ Monthly payment, total amount paid, and total interest are displayed instantly.
5️⃣ Compare different rate and term combinations to find the most cost-effective option.

Formula

Monthly Payment = P × r(1 + r)^n / [(1 + r)^n − 1], where P is principal, r is monthly rate (annual ÷ 12), and n is total months.

💡 See it in action — a real example

$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.

❓ Common 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.

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