Business Loan Calculator
Estimate your business loan's monthly payment, total interest, and full cost including optional fees rolled into the loan.
Example
A $100,000 loan at 8.5% APR over 5 years (60 months) with $2,000 in fees financed into the loan:
- Amount financed: $102,000
- Monthly payment: $2,092.69
- Total of payments: $125,561.40
- Total interest: $23,561.40
If the $2,000 fee were paid upfront instead, the monthly payment drops to $2,051.65 with $23,099.19 total interest.
How it works
Enter the loan amount, annual interest rate, term, and any upfront fees, then choose whether fees are financed into the loan or paid out of pocket. The tool applies the standard amortization formula and updates the payment, interest, and cost breakdown instantly.
Good to know
The Business Loan Calculator turns four inputs — loan amount, annual interest rate, term in years, and any upfront fees — into a clear picture of what borrowing will actually cost. It runs the standard amortization formula in your browser to show your fixed monthly payment, total interest paid over the life of the loan, the full amount financed, and an effective APR that folds fees into the headline rate. It is built for small-business owners, founders, and freelancers comparing financing offers such as term loans, SBA loans, or equipment financing before signing anything.
Reach for it when you have a quote and want to sanity-check it, or when you are weighing two offers with different rates and fee structures. The key differentiator here is the Fee handling toggle: switching between "Financed" and "Paid upfront" shows how rolling fees into the principal raises both your monthly payment and the interest you pay on those fees, versus covering them in cash at closing to keep the payment lower.
To read the results, start with the monthly payment, then look at the stacked bars that split your total outlay into principal, interest, and fees so you can see how much of the loan is genuine cost versus borrowed money. The effective APR is the most useful single number for comparing offers, because two loans with the same nominal rate can carry very different true costs once fees are included.
One practical caveat: the effective APR here is an approximation that spreads all finance charges over the original amount and term, so it may not match a lender's officially disclosed APR, which can use a different method. The tool also assumes a fixed rate and excludes taxes, insurance, prepayment penalties, and any variable-rate changes — treat the output as an estimate for comparison, not a binding quote.
Frequently asked questions
Should I finance the loan fees or pay them upfront?
Financing rolls fees into the loan, raising your monthly payment and adding interest on those fees over the term. Paying upfront keeps the payment lower and avoids interest on the fee amount, but requires cash at closing. Use the Fee handling toggle to compare both.
Why does the effective APR differ from the rate I entered?
The interest rate you enter is the nominal annual rate. The effective APR shown here approximates the true yearly cost by spreading all finance charges (interest plus fees) over the original loan amount and term, so fees push it above the nominal rate. A lender's official APR may use a different calculation.
Is my data uploaded anywhere?
No — this calculator runs entirely in your browser; nothing is uploaded.
Is this financial advice?
No. These are educational estimates — consult a qualified financial professional before making decisions.
People also ask
How is a business loan monthly payment calculated?
It uses the standard amortization formula, which spreads the principal and interest evenly across every month of the term so each payment is the same amount. The inputs are the amount financed, the monthly interest rate (annual rate divided by 12), and the number of months (years times 12).
What is the difference between interest rate and APR on a business loan?
The interest rate is the nominal cost of borrowing the principal, while APR (annual percentage rate) also reflects fees and certain charges, giving a fuller picture of yearly cost. Because APR includes fees, it is usually higher than the stated interest rate.
What is a typical interest rate for a business loan?
Rates vary widely by lender, loan type, term, and the borrower's credit and revenue, ranging from single digits for SBA or bank term loans to much higher rates for short-term online financing. The rate you are offered depends on your specific qualifications and the current lending environment.
Does this calculator include a balloon payment or variable rate?
No. It assumes a fully amortizing fixed-rate loan with equal monthly payments and no balloon. Loans with balloon payments, interest-only periods, or adjustable rates would produce different results than this estimate shows.
How does loan term length affect total interest paid?
A longer term lowers each monthly payment but increases the total interest paid because you carry the balance longer. A shorter term raises the monthly payment but reduces total interest.
Can I use this for an SBA loan or equipment financing?
You can use it for any fixed-rate, fully amortizing loan, including many SBA and equipment financing products, by entering the amount, rate, term, and fees. It does not model SBA guarantee fees, draw periods, or other product-specific structures separately, so confirm details with the lender.
What counts as upfront fees on a business loan?
Upfront fees can include origination fees, packaging or processing fees, and similar one-time charges assessed at closing. In this tool you enter a single total and choose whether those fees are financed into the loan or paid out of pocket.
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