Business Loan Calculator – Estimate Monthly Payments
Calculate payments and total cost for a small-business term loan.
About the Business Loan Calculator
What is the Business Loan Calculator?
A business loan calculator estimates the monthly payment and full cost of a commercial term loan, including fees.
Why use this calculator?
Business borrowing is usually tied to a plan for growth or cash flow. Understanding the true cost of credit — not just the quoted rate — protects your margins and helps you compare lenders.
How to use it
- Enter the amount you want to finance.
- Enter the quoted interest rate.
- Choose the term your lender offered.
- Add any origination or closing fees.
Formula
Same amortizing formula as other term loans; the effective cost adds fees to total interest.
SBA-style loans often combine a bank loan with a government guarantee, which can lower the rate.
Frequently Asked Questions
What do lenders look for in a small-business loan?
Time in business, revenue, profitability, credit score, collateral, and a clear repayment plan. A strong business plan and financial statements improve approval odds.
Are business loan interest payments tax deductible?
In many jurisdictions interest on a business loan is a deductible expense. Confirm the rules with an accountant for your situation.
What is the difference between principal and interest?
The principal is the amount you borrow. Interest is the fee charged for borrowing it, shown either as an annual rate (APR) or a periodic rate. Early payments go mostly toward interest; later payments go mostly toward principal.
How does the loan term affect my payment?
A longer term lowers the monthly payment but increases the total interest you pay over the life of the loan. A shorter term raises the monthly payment but costs less overall.
What is an amortization schedule?
It is a table that breaks every payment into its principal and interest portions and shows the remaining balance after each payment.
Should I make extra payments?
Extra payments reduce principal directly, which shortens the loan and cuts total interest. Many loans have no prepayment penalty, but check your agreement first.
What is APR and how is it different from the interest rate?
The interest rate applies only to the balance. The APR (annual percentage rate) also includes fees and points, so it reflects the true yearly cost of the loan.
Is this calculator free to use?
Yes. Every calculator on this site is completely free, with no hidden fees, no subscriptions and no limits on how many times you can use it.
How accurate are the results?
We use standard, widely accepted formulas and calculate in your browser using double-precision arithmetic. Results are rounded for readability, so treat them as reliable estimates rather than a guarantee. Real-world factors can vary the true figure.
Can I add this calculator to my own website?
Yes. Open this calculator page and use the "Add to your website" box in the sidebar to copy a ready-made iframe snippet, then paste it into any HTML page.