How the Business Loan Calculator works
Estimate business loan payments and borrowing cost. Adjust the inputs above, then use the calculate button to generate a fresh estimate based on the numbers you entered.
The result is designed to give you a quick planning number, plus a short breakdown of the major figures behind it. You can reset the form at any time and try a different scenario.
When to use this calculator
Use this business loan calculator to estimate payments and borrowing cost for a small business loan. It is helpful when comparing financing offers, equipment purchases, working capital loans or expansion funding.
Formula
Payment = financed amount x monthly rate / (1 - (1 + monthly rate)^(-months))
- Financed amount includes the business loan amount plus fees if financed.
- Monthly rate is the annual interest rate divided by 12.
- Months is the loan term in years multiplied by 12.
Worked example
For a $75,000 business loan at 9% over 5 years with $1,500 in fees, the calculator estimates payment, total repayment and interest.
Common mistakes
- Ignoring setup, closing or origination fees.
- Borrowing based on revenue hopes rather than current cash flow.
- Choosing a longer term without checking total interest.
FAQs
Should fees be included?
Yes, include fees if they are financed or compare them separately if paid upfront.
Is this enough for a business loan decision?
No. Also review cash flow, collateral, covenants, taxes and the purpose of the loan.
Can I use this for a variable-rate loan?
Only as a snapshot. Variable-rate payments can change.