Finance tools
Business loan calculator
Estimate monthly business loan payments, total interest, and total repayment on a US term loan—whether you are sizing a small business loan or a larger facility. Enter amount, term, APR or factor rate, and optional fees to see effective APR, then expand the amortization schedule or export CSV/PDF. Need detailed extra-payment modeling? Try our amortization schedule calculator. Numbers are illustrative—not a loan offer or financial advice.
What this business loan calculator does
A business loan payment calculator estimates your fixed monthly payment on a term loan using standard amortization—the same math many banks and online lenders use for installment products. This one also rolls origination and flat fees into the financed amount and shows effective APR when fees change what you actually pay over the life of the loan.
Use factor rate mode when a lender quotes total repayment as principal × factor (common on some short-term and merchant-style products). In every case, compare total dollars repaid, not only the monthly payment.
- Estimated monthly payment and payoff date
- Total interest, fees, and total repayment
- Stated APR and effective APR when fees apply
- Amortization schedule preview plus CSV/PDF export
For definitions of amortization, see the CFPB on amortization.
Business loan payment formula
Fixed-rate term loans spread principal and interest across equal monthly payments. Early in the term, more of each payment covers interest; later payments retire more principal. That is why total interest rises quickly when you extend the term just to lower the monthly bill.
Fixed-rate monthly payment (APR loans)
M = P × [r(1+r)^n] / [(1+r)^n − 1]P = amount financed (loan + rolled fees), r = monthly rate (APR ÷ 12 ÷ 100), n = term in months, M = payment. At 0% APR, payment is P ÷ n.
Example: $100,000 financed at 10% APR for 60 months → about $2,124.70 per month before extra payments.
| Loan amount | APR | Term | Est. monthly payment |
|---|---|---|---|
| $50,000 | 12% | 60 months | $1,112 |
| $100,000 | 10% | 60 months | $2,125 |
| $200,000 | 9% | 120 months | $2,534 |
Figures assume no fees and fixed APR—use the calculator for your rate, term, and fee inputs. Optional extra monthly payments (APR mode) reduce total interest and can shorten payoff time.
Typical business loan interest rates (2026)
Last updated: September 2026. Rates change with credit, industry, and macro conditions—treat these as planning brackets, not quotes.
Business loan interest rates vary by lender, credit profile, loan type, and term. Use the table to pick test inputs for the calculator; then compare formal offers on APR, fees, and total repayment.
| Lender / product type | Illustrative APR or pricing | Typical term |
|---|---|---|
| Bank term loan / SBA-backed | About 7%–13% APR for strong credits | 5–25 years |
| Online term loan | Often ~12%–30%+ APR | 1–5 years |
| Short-term / factor-rate | Factor (e.g. 1.10–1.35× principal) | 3–24 months |
SBA and bank products may add guarantee or packaging fees that affect true cost—model them in Fees & extra payments and check effective APR. Factor-rate quotes do not show APR on their own; compare total repayment dollars instead.
Learn more: SBA loan programs · SBA guide to funding your business.
Factor rate vs APR
An APR term loan amortizes principal and interest each month—the interest portion shrinks over time. A factor rate loan states total repayment up front as principal × factor, then splits that total into equal payments. Factor products are common in merchant cash advances and some short-term online loans.
Factor rate math
Total repayment = loan amount × factor rate
Monthly payment = total repayment ÷ term in months (equal installments in this calculator).
| Pricing | $10,000 / 12 months | Monthly payment | Total repaid |
|---|---|---|---|
| 10% APR term loan | Amortizing | ~$879 | ~$10,550 |
| Factor 1.15 | 1.15 × principal | ~$958 | $11,500 |
Use the APR term loan / Factor rate toggle above the inputs to switch modes. In this example, the factor loan costs about $950 more in total—always compare total repayment and fees, not only which monthly payment looks smaller.
SBA and common business loan types
Lenders use different products; the calculator models a fixed-rate installment term loan. Match the product you are considering to realistic term lengths and rate brackets from the table above.
- SBA 7(a) term loans: long repayment (often up to 10–25 years for real estate), government guarantee to the lender—not a direct SBA cash grant
- SBA microloans: smaller amounts (often up to about $50,000) with shorter terms
- Conventional bank term loans: lump sum, fixed monthly payments, underwriting on revenue and collateral
- Online term loans: faster decisions; often higher APRs than traditional bank loans
- Equipment loans: often secured by the asset; may use similar installment math with shorter terms than real estate
- Lines of credit: draw as needed—revolving interest on balances; use this calculator only if you model a fixed installment payoff
Calculator presets
SBA-style term pre-fills a longer amortization and moderate APR. Online term loan and Working capital presets use shorter terms and higher illustrative rates—you can edit every field after selecting a preset.
Before you borrow: cash-flow checklist
Stress-test the monthly payment
Compare the calculator’s monthly payment to average monthly cash flow after payroll, rent, inventory, and taxes. Use a recent three- to six-month average—not your best month. Leave headroom for slow seasons, late customer payments, and tax deadlines.
Compare total cost, not just APR
Add origination and documentation fees in the advanced panel and check effective APR. Two offers with the same stated APR can differ if one rolls in higher fees. For factor-rate loans, compare total dollars repaid to a bank term loan at a quoted APR over the same horizon.
Match term to the use of funds
Working capital loans often need shorter payback than equipment or real estate. Stretching term lowers the payment but usually raises total interest—run both a 36-month and 60-month scenario in the calculator before you choose.
Have a backup plan
Decide in advance what you will do if revenue dips: draw on reserves, trim discretionary spend, renegotiate with vendors, or contact the lender about hardship options. Missing payments can trigger penalties, default, or personal guarantee claims on secured loans.
Which loan calculator should I use?
Pick the calculator that matches what you are financing. This page is for a single installment business loan with optional fees and factor-rate pricing—not a car loan, a stack of credit cards, or a revolving line.
| Calculator | Best for |
|---|---|
| Business loan calculator (this page) | SMB term loans, origination fees, factor rate, effective APR |
| Amortization schedule calculator | Full schedule, crossover date, heavy extra-payment modeling |
| Auto loan calculator | Vehicle price, down payment, trade-in, sales tax |
| Debt payoff calculator | Several debts, snowball or avalanche payoff order |
| Finance charge calculator | Revolving balance, periodic rate, finance charge on a statement |
Open the amortization schedule calculator for schedule depth, the debt payoff calculator for multiple balances, or the finance charge calculator for revolving APR on a statement balance.
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Frequently asked questions
How do I calculate my business loan payment?
Enter loan amount, APR (or switch to Factor rate), and term in months in the calculator above—the fixed monthly payment is the amount that amortizes the loan over that term. Open Fees & extra payments to include origination or flat fees and view effective APR.
What is a business loan calculator?
A business loan calculator (or business loan payment calculator) estimates monthly payment, total interest, and total repayment from amount, rate, and term. This one also models fees, factor rates, and effective APR, with an amortization schedule you can export—use it to compare offers, not as a loan approval.
What is the monthly payment on a $50,000 business loan?
About $1,112 per month for a $50,000 loan at 12% APR over 60 months with no fees—your payment changes with rate and term. Use the presets or enter your lender’s numbers.
What is the payment on a $100,000 business loan?
At 10% APR over 60 months, a $100,000 loan is about $2,125 per month before fees. Shorter terms raise the payment but cut total interest.
What is the payment on a $200,000 business loan?
At 9% APR for 120 months, payments are roughly $2,534 per month (no fees). Adjust rate and term in the calculator for your scenario.
What is the monthly payment on a $500,000 business loan?
Example: $500,000 at 8.5% APR for 120 months is about $6,199 per month before fees. Longer terms lower the payment but increase total interest.
What is the payment on a $1 million business loan?
Example: $1,000,000 at 8% APR for 120 months is about $12,133 per month (no fees). Use your lender’s actual APR and term for a firm estimate.
What is effective APR on a business loan?
Effective APR is the annual cost of borrowing after fees—not just the rate on the paperwork. When origination or documentation fees are rolled into what you repay, effective APR is often higher than the stated APR. This calculator estimates it from your net loan amount and monthly payments.
What is a factor rate on a business loan?
A factor rate multiplies principal to get total repayment (for example factor 1.20 on $10,000 → $12,000 total). Select Factor rate at the top of the calculator, enter the factor and term, and we spread that total into equal monthly payments.
What are typical business loan interest rates?
There is no single rate—many bank or SBA-backed term loans for strong credits fall around 7%–13% APR, some online term products run 12%–30%+ APR, and short-term options may use factor pricing (for example 1.10–1.35× principal). See Typical business loan interest rates (2026) above for planning brackets (last updated September 2026).
Does this calculator include origination fees?
Yes. Enter an origination fee % plus any flat documentation or other fees under Fees & extra payments. Those fees are added to the amount financed, which raises your payment and can increase effective APR above the stated rate.
Can I add extra monthly payments?
Yes, in APR mode. Enter an extra monthly amount in the advanced panel to see interest savings. For complex extra-payment schedules, use our amortization schedule calculator.
Is a business loan calculator the same as an amortization calculator?
Both use the same core payment math. This page adds business loan context—fees, effective APR, factor rates, and rate guides. The amortization tool goes deeper on schedules and crossover.
How hard is it to get a $100,000 business loan or SBA loan?
There is no fixed difficulty score—lenders weigh revenue, time in business, credit, cash flow, and collateral. Many companies borrow $100,000 through banks or SBA-guaranteed programs when they meet those criteria, but approval is case-by-case. Use this page only to model payments on $100,000; for programs and eligibility, see SBA loan programs.
How big of a loan can an LLC get?
There is no single LLC limit—lenders size loans to cash flow, industry, and guarantees. Microloans may cap near $50,000; SBA 7(a) loans can reach millions for qualifying businesses.
Are business loan payments tax deductible?
Interest on business loans is often deductible when the loan is used for business purposes; principal is not. Tax rules vary—consult a tax professional.
Is this business loan calculator free?
Yes. Use the calculator, copy results, and export CSV or PDF without signing up. It is an educational estimate—not a loan application, loan offer, or financial advice.