Business Loan Calculator
Enter the loan amount, rate, and term to see your monthly payment — and what the loan really costs you.
Runs entirely in your browser — your numbers never leave this page.
How it works
A business loan's monthly payment comes from the standard amortization formula:
PMT = P × r × (1+r)n ÷ ((1+r)n − 1)
- APR vs rate: the quoted rate ignores fees. Add the origination fee to total cost — a 9% loan with a 5% fee costs more than a 10% loan with no fee.
- Term trade-off: longer term = lower payment but much more total interest. A 10-year $50k loan at 9.5% costs ~$27k in interest vs ~$13k over 5 years.
- Types: SBA 7(a) (cheapest, slowest), bank term loans, online lenders (fastest, priciest), equipment loans (collateral-backed), lines of credit (flexible).
- Tax: business loan interest is generally deductible — the after-tax cost is lower than the headline number.
- Rule of thumb: borrow for things that earn more than the loan costs — equipment, inventory turns, growth — not to cover operating losses.
Frequently asked questions
How is a business loan payment calculated?
Standard amortization: PMT = P × r(1+r)ⁿ ÷ ((1+r)ⁿ − 1), where r is the monthly rate and n the number of payments.
What is a good business loan rate?
SBA loans: ~7–10%; bank term loans: ~8–13%; online lenders: 15–40%+. Your credit, revenue, and collateral move the needle.
APR vs interest rate?
The rate is just interest; APR folds in fees for a truer comparison. Always compare APR across offers.
Is business loan interest tax-deductible?
Generally yes — interest on loans used for business purposes is a deductible business expense.
How much can I borrow?
Lenders commonly cap payments at ~1.25x your debt-service coverage — roughly, annual profit should exceed annual payments by 25%.
Term loan vs line of credit?
Term loan: lump sum, fixed payments — for equipment or expansion. Line of credit: draw as needed — for cash-flow gaps and inventory.
What is an origination fee?
An upfront charge, typically 1–5% of the loan, deducted from proceeds or added to cost. It raises your effective APR.
Can I prepay a business loan?
Often yes, but check for prepayment penalties — some lenders charge 1–5% for early payoff, especially in year one.
SBA loan vs bank loan?
SBA 7(a): lower rates, longer terms, but slow approval (weeks–months). Bank loans: faster, stricter. Online: same-day, expensive.
Do I need collateral?
Secured loans (equipment, property-backed) get lower rates. Unsecured loans cost more and lean on your credit and cash flow.