Business Loan Calculator
Enter the loan amount, the term in years and the annual interest rate from a lender's quote. The calculator returns the monthly payment, the total you repay and the total interest over the life of the loan. Every figure is in whole cents, and the last payment clears whatever is left.
How to use the Business Loan Calculator
- Enter the loan amount, the term in years and the annual interest rate from the lender's quote.
- Press Calculate to see the monthly payment, the total you repay and the total interest.
- The calculator has no fee field. If the lender charges an origination fee, compare offers by the APR the lender quotes, which includes the fee, and see the worked example for how much a fee adds.
The monthly payment formula
M = P · r(1 + r)^n / ((1 + r)^n − 1), where P is the loan amount, r is the annual rate ÷ 12 and n is the number of monthly payments.
The calculator rounds M to the cent and charges each month's interest on the balance, rounded to the cent. The last payment clears what is left, so it can differ from M, and it is never more than 1% above M. At 0% the payment is P divided by n. An origination fee comes out of the cash you receive while interest runs on the full loan amount, so the APR, which counts the fee, is higher than the interest rate.
Worked example
A $100,000 business loan at 8% interest over 10 years: M = $1,213.28/month, and the last of the 120 payments is $1,212.47. Total paid: $145,592.79. Interest paid: $45,592.79. Add a $3,000 origination fee and you receive $97,000 but still repay the full $100,000. Enter $97,000 at 8.7% over 10 years and the payment comes to $1,213.06, 22 cents less than you pay, so with the fee the loan costs a little over 8.7% a year.
Frequently asked questions
What interest rate should I enter?
The annual interest rate from the lender's quote. The calculator has no typical rate built in. On a variable-rate SBA 7(a) loan the rate cannot exceed a base rate plus a spread set by loan size: 6.5 points for $50,000 or less, 6.0 up to $250,000, 4.5 up to $350,000 and 3.0 above that. Fixed-rate 7(a) loans have their own maximums, which the SBA publishes separately. Ask each lender for the APR as well, because the APR counts fees and the calculator does not.
What is a personal guarantee?
A pledge that you, the business owner, will repay the loan yourself if the business cannot. With it you owe the debt as well as the business. A guarantee does not change the payment, so it plays no part in the calculation.
Should I get an SBA loan?
The calculator does not compare loan types. To weigh an SBA quote against a bank or online lender's quote, enter the amount, rate and term of each and compare the monthly payment and the total interest. Fees are not included, so compare the APRs too.