Business Loan Calculator

Business Loan Calculator – Estimate Payments & Interest | FinanceCalculatr

Entry — Business Loan

Estimate your business loan payments, total interest, and repayment cost based on the amount borrowed, interest rate, and loan term.

Entry — Business Loan
$

Loan amount can’t be negative.

%

Enter a rate between 0% and 40%.

yrs
mo
Loan Fees
%
$
Down Payment (if applicable)
$

Leave at $0 if there’s no separate purchase price — the loan amount above will be used as-is.

%
Additional Payment
$

Applied on top of your regular payment, every period, starting from payment 1.

First Payment Timing
ℹ️ How this works. The calculator applies the standard amortizing-loan formula using the periodic rate that matches your chosen payment frequency — it does not pull live lender rates or guarantee approval.
Estimated payment
$0
Where Your Payments Go
Principal Interest
  • Loan amount$0
  • Interest rate0.00%
  • Loan term0
  • Total payments0
  • Total interest$0
  • Total repayment$0
  • Total cost of borrowing$0
Business Loan Balance Over Time
Chart showing the remaining loan balance decreasing over time as principal and interest are paid.
Remaining balance

Advanced Feature

What If I Pay Extra?

See how your additional payment (entered in Advanced Mode above) changes your payoff timeline and total interest.

Original Loan

Payoff time
0 payments
Total interest
$0
Total payments
$0
vs

With Extra Payments

Payoff time
0 payments
Total interest
$0
Total payments
$0

PaymentPayment AmountPrincipalInterestRemaining Balance

Weigh Your Options

Compare Business Loan Terms

Using your current amount and rate, here’s how the term length changes your payment and total interest. A shorter term generally means higher payments but less total interest; a longer term generally lowers payments but can increase total interest.

TermPaymentTotal InterestTotal Repayment

Explore The Options

Compare Interest Rates

Using your current amount and term, here’s how a few common rates affect your payment and total interest.

RatePaymentTotal InterestTotal Repayment

Advanced Feature

Can Your Business Afford the Payment?

This is an illustrative cash-flow estimate, not a lender approval decision — enter your numbers to see how the estimated payment compares to what’s left over each month.

$
$
$
Available cash flow after this loan payment
$0

This is a simple illustrative estimate of cash flow, not a debt-service-coverage calculation or a lender’s underwriting standard. Real approval depends on many factors your lender evaluates.

The Math

Business Loan Calculator Formula

A standard fixed-rate amortizing loan spreads principal and interest evenly across every payment.

Payment = P × r ÷ (1 − (1 + r) −n) Fees, extra payments, and payment frequency can all change your total cost beyond this base formula.
  • P — loan principal (the amount actually borrowed).
  • r — periodic interest rate (annual rate ÷ payments per year).
  • n — total number of payments over the term.
  • Payment — the fixed amount paid each period.

Worked Example

Business Loan Calculator Example

Loan amount
$100,000
Annual interest rate
8.00%
Loan term
5 years, monthly payments
Estimated monthly payment
≈ $2,027.64
Total payments (60)
≈ $121,658
Total interest
≈ $21,658
Total repayment
≈ $121,658

Borrowing $100,000 at 8% over 5 years costs about $21,658 in interest on top of the principal — roughly 21.7% of the amount borrowed, before any fees.

Beyond The Rate

What Does a Business Loan Really Cost?

  • 01

    Principal

    The amount you actually borrow and must repay.

  • 02

    Interest

    The cost of borrowing, driven by your rate, term, and payment frequency.

  • 03

    Origination fees

    A percentage or flat fee some lenders charge to originate the loan.

  • 04

    Other fees

    Application, processing, or servicing fees can add to the real cost.

  • 05

    Payment frequency and term

    Both affect how quickly interest accrues and how much you’ll pay in total.

  • 06

    Early repayment terms

    Some loans charge prepayment penalties — always check before paying extra or paying off early.

The interest rate alone doesn’t always represent the complete cost of borrowing — fees and terms can meaningfully change what a loan actually costs.

Know The Difference

Interest Rate vs APR

The interest rate reflects the cost of borrowing the principal itself.

The APR can incorporate certain fees and other borrowing costs on top of the interest rate, depending on the product and applicable rules — so APR may be higher than the stated rate. Requirements for how APR is calculated and disclosed can differ by jurisdiction and loan type.

“The rate tells you the cost of the money. The APR tries to tell you the cost of the whole loan.”

Choosing A Rate Type

Fixed-Rate vs Variable-Rate Business Loans

  • 01

    Fixed rate

    The rate stays the same for the loan’s fixed period, so payments are generally more predictable.

  • 02

    Variable rate

    The rate — and your payment — may change based on the loan’s terms and reference rate. Not every variable loan adjusts the same way, so check your specific agreement.

  • 03

    This calculator assumes a fixed rate

    For a variable-rate loan, treat the results as a snapshot at your current assumed rate, not a guarantee of future payments.

Transparency

Business Loan Calculator Assumptions

  • 01

    Actual lender terms vary

    Rates, fees, and structures differ by lender and loan product.

  • 02

    Rates differ by borrower

    Your actual rate depends on creditworthiness, collateral, and lender criteria.

  • 03

    Fees may vary

    Not all lenders charge the same origination or servicing fees.

  • 04

    Payment schedules differ

    Some loan products use non-standard schedules or interest calculations.

  • 05

    Variable rates can change

    This calculator assumes a constant rate unless you manually re-run it with a new one.

  • 06

    Taxes and expenses aren’t fully modeled

    Only the figures you explicitly enter in the Affordability section are considered.

  • 07

    Results are estimates

    This calculator does not determine loan approval or eligibility.

Questions

Frequently Asked Questions

A business loan calculator estimates your periodic payment, total interest, and total repayment cost for a business loan based on the amount, rate, term, and payment frequency you enter.
Payments are calculated using the standard amortizing-loan formula, which spreads the loan amount and interest evenly across the number of payments in the term.
Total cost includes the principal you borrow plus total interest over the term, plus any upfront or financed fees. Enter your numbers above to see a full breakdown.
A higher rate increases both your periodic payment and the total interest paid over the life of the loan, for the same amount and term.
Yes, in Advanced Mode you can add an origination fee, application fee, or other upfront costs, and choose whether to pay them upfront or finance them into the loan.
An amortization schedule shows each payment broken into principal and interest, along with the remaining balance, across the full loan term.
Yes. Extra payments reduce the principal faster, which lowers the interest charged on future payments and can shorten the payoff timeline.
A shorter term generally means higher periodic payments but less total interest paid. A longer term generally lowers payments but can increase total interest. The better choice depends on your cash flow and goals.
The interest rate reflects the cost of borrowing the principal. APR can incorporate certain fees and other borrowing costs, so it may be higher than the stated interest rate — this varies by lender and loan type.
No. This tool provides estimates only. Loan approval, rates, and terms are determined by individual lenders based on their own underwriting criteria.

See what your own loan numbers look like.

Free, fast, and no account required — run the calculator above with your own amount, rate, and term.

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