Business Loan Calculator

Estimate payments for a small business term loan or SBA loan, and see the real cost once fees are included.

By the CalculateBright team · Updated · How we calculate

  

    How to use the Business Loan calculator

    1. Enter your numbers. Fill in loan amount, interest rate, term, payment frequency, origination / SBA guarantee fee.
    2. Read your results. Results update instantly. The headline shows the monthly payment; the breakdown below show the details.

    How business loan payments work

    Bank term loans and SBA 7(a) loans are usually fully amortizing: a level payment covers interest and principal so the loan is repaid by the end of the term. Online lenders often collect weekly or daily, which this calculator supports by converting the APR to a per-period rate.

    Payment = P × i ÷ [1 − (1 + i)−n], i = APR ÷ payments per year

    Fees change the real cost

    Origination or SBA guarantee fees are typically deducted from the proceeds or paid at closing. The calculator estimates an APR that treats the fee as reducing the money you receive, which is the right way to compare offers.

    Factor rates aren’t APRs

    Merchant cash advances quote a factor rate (for example 1.25). Repaying $125,000 on a $100,000 advance over 9 months works out to an APR above 50%. Always convert to APR before comparing.

    Worked example

    With these inputs: loan amount $150,000; interest rate (APR before fees) 10.5%; term (years) 5; payment frequency Monthly; origination / SBA guarantee fee 2%.

    The calculator gives a monthly payment of $3,224.09 (60 payments). Other results: total interest $43,445, upfront fee $3,000, total cost of borrowing $46,445, APR incl. fee (approx.) 11.38%.

    What your results mean

    The payment is what your cash flow must cover each period. The APR including fees is the number to compare across lenders, because two loans with the same rate can have very different costs.

    Tips

    • Check that monthly cash flow covers the payment at least 1.25 times.
    • Ask whether there’s a prepayment penalty or a fixed interest charge.
    • Convert factor rates and weekly payments to APR before comparing.

    Frequently asked questions

    How much is a $100,000 business loan per month?

    At 10% over 5 years, about $2,125 a month; over 10 years, about $1,322.

    Why is my APR higher than the interest rate?

    Fees reduce the money you actually receive while payments stay the same, so the effective annual cost is higher.

    What are typical SBA 7(a) rates?

    SBA caps 7(a) rates at the prime rate plus a maximum spread that depends on loan size, so rates move with prime.

    What do lenders look at?

    Time in business, annual revenue, cash flow (debt service coverage), personal credit and collateral.

    Is business loan interest tax-deductible?

    Generally yes, as a business expense, subject to the business interest limitation for larger businesses. Ask a tax professional.

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    Sources