Loan Details
Business loans typically range 6-30%
5.0 years
One-time fee charged at loan origination
Loan Summary
Yearly Summary
| Year | Principal Paid | Interest Paid | Remaining Balance |
|---|---|---|---|
| Year 1 | $16,944.01 | $7,387.66 | $83,055.99 |
| Year 2 | $18,350.35 | $5,981.32 | $64,705.64 |
| Year 3 | $19,873.43 | $4,458.25 | $44,832.21 |
| Year 4 | $21,522.91 | $2,808.76 | $23,309.30 |
| Year 5 | $23,309.30 | $1,022.37 | $0.00 |
How to Calculate Your Business Loan Payments
- 1
Select Your Loan Type
Choose the type of business financing you need: standard business loan, SBA loan, equipment financing, or line of credit. Each loan type has different typical rate ranges and term lengths that will pre-populate suggested values. - 2
Enter Loan Amount and Rate
Input the total loan amount you plan to borrow and the annual interest rate offered by your lender. If you are unsure of your rate, use the suggested range for your selected loan type as a starting point. - 3
Set Term and Fees
Specify the loan term in months and any origination fee percentage. Origination fees typically range from 1% to 5% and are deducted from the loan proceeds at closing, which increases your effective APR. - 4
Review Results and Amortization
Analyze your monthly payment amount, total interest paid over the life of the loan, effective APR, and the complete amortization schedule. Use the yearly summary to see how your principal and interest payments shift over time.
Who Benefits from a Business Loan Calculator?
Small Business Owners Seeking Funding
Equipment Purchases and Expansion
Comparing Multiple Loan Offers
Financial Planning and Budgeting
Why Use Our Business Loan Calculator?
A business loan calculator helps you estimate monthly payments, total interest costs, and the effective annual percentage rate (APR) for commercial financing. Whether you are applying for a standard bank term loan, equipment financing, or a line of credit, knowing your true borrowing cost before you sign is essential for sound financial planning. Use this tool alongside our Amortization Calculator to visualize how each payment is split between principal and interest over the life of your loan. If you are specifically evaluating an SBA 7(a), 504, or Express loan, the dedicated SBA Loan Calculator pre-fills typical SBA rates and handles the SBA guarantee fee.
Choosing between loan types can be confusing. SBA loans typically offer lower rates and longer repayment terms, but require extensive paperwork and come with a guarantee fee. Standard business loans from banks or online lenders close faster but may carry higher rates. Equipment financing ties the loan to a specific asset, which can reduce your rate because the equipment serves as collateral. Use our ROI Calculator to determine whether a capital investment funded by borrowed money will generate enough return to justify the interest expense, and our Break-Even Calculator to find out how quickly that investment pays for itself.
Beyond monthly payments, it is important to evaluate total loan cost including origination fees. A loan with a lower stated rate but a 3% origination fee may actually cost more than a slightly higher-rate loan with no fee. Our calculator computes the effective APR so you can compare offers on equal footing. For businesses managing multiple debts, the Debt Payoff Calculator can help you build a repayment strategy, while the Profit Margin Calculator ensures your margins can support the new debt service.
How It Compares
Typical business loan rates by type (April 2026):
- SBA 7(a): 10.5%–13.5% APR, terms up to 10 years (working capital) or 25 years (real estate). Lowest rate for qualifying small businesses. See the dedicated SBA Loan Calculator.
- Bank term loan: 8%–15% APR, terms 1–10 years. Faster approval than SBA but higher rate.
- Online / alternative lender: 12%–35% APR, terms 3 months–5 years. Fastest approval but expensive.
- Equipment financing: 7%–18% APR, terms matched to asset life (3–7 years). Equipment itself is the collateral.
- Business line of credit: 8%–25% APR, revolving. Pay interest only on the drawn balance.
Monthly payment math uses the standard amortization formula: M = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is principal, r is the monthly rate (annual rate ÷ 12), and n is the number of monthly payments. For a $150,000 term loan at 10% over 60 months, that works out to $3,187/month and $41,210 in total interest. Enter your own numbers in the calculator above for an exact figure.
Always compare the effective APR rather than the stated interest rate. A lender quoting 8% interest with a 3% origination fee has an effective APR closer to 9.5% on a 5-year loan. The calculator computes this automatically so you can compare offers on equal terms.