Business Loan Calculator
Calculate the monthly payment and true APR for a business loan, including origination fees and other costs that aren't in the headline rate.
How to use the Business Loan Calculator
- Enter your inputs into the Business Loan Calculator above.
- Results update instantly as you type — no submit button needed.
- Adjust any value to see how the result changes in real time.
The business loan APR
M = P · r(1 + r)^n / ((1 + r)^n − 1), where P excludes fees. True APR solves for the rate that includes fees in P.
Origination fees reduce the cash you actually receive but you pay interest on the full face amount. The effective APR is higher than the stated rate because of this.
Worked example
A $100,000 SBA loan at 8% APR over 10 years with a $3,000 origination fee: stated monthly payment $1,213. You actually receive only $97,000 but pay back as if you borrowed $100,000 — effective APR is closer to 8.7%.
Frequently asked questions
What APR range is typical?
SBA 7(a) loans in 2026: roughly 9–13% (prime + 2–6 points). Bank term loans: 7–11% for established businesses. Online lenders: 12–30% for less-qualified borrowers. Merchant cash advances: 30%+ effective rate.
What is a personal guarantee?
A pledge that you (the business owner) will personally repay the loan if the business cannot. Almost all small business loans require a personal guarantee, eroding the legal liability shield of the business entity.
Should I get an SBA loan?
SBA loans typically have lower rates and longer terms than conventional bank loans, but require more paperwork and time to close. Worth it for larger loans (>$100K) where the rate spread is meaningful.