Free Business Loan Calculator: Payments & Total Interest
Estimate the monthly payment, total repayment, and interest for a fixed-rate, fully-amortizing business loan before you compare offers.
Fixed-rate estimate with equal monthly payments. Enter the annual interest rate, not a fee-inclusive APR. Fees, insurance, variable rates and balloon payments are not included; confirm the actual payment schedule with your lender.
How much do you want to borrow?
Use the annual rate stated for the loan. Zero interest is supported.
Select a term or enter 0.25-30 years in 0.25-year steps.
Enter loan details to see your results
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Business Loan Payment Examples
| Example | Result |
|---|---|
| $50,000 loan, 8% annual interest, 5 years | $1,013.82/mo |
| $100,000 loan, 12% annual interest, 7 years | $1,765.27/mo |
| $25,000 loan, 6% annual interest, 3 years | $760.55/mo |
Business Loan Payment Formula and Cost Comparison
A business loan calculator is one of the most important tools to use before signing on the dotted line. Most borrowers fixate on the monthly payment—but the real cost of a loan is the total interest you pay over its lifetime, and that number can be shockingly different from what you expect.
The examples above use the same calculation as your results. They assume fixed annual interest, equal monthly payments and no fees. The rate comparison holds the principal and term constant and increases annual interest by two percentage points.
Compare both monthly payments and total repayment while keeping the assumptions consistent. A shorter term can increase the monthly payment; affordability, fees and the actual loan terms also matter.
Interest rate and APR are different measures: APR also reflects applicable fees. This tool uses an annual interest rate and does not calculate APR or lender charges. See the CFPB explanation of interest rate and APR.
Before you calculate, know what you're comparing. Input the same loan amount, rate, and term into this calculator to compare offers side by side. The difference between lenders can be tens of thousands of dollars on a $100,000 loan over 5 years. This calculator pays for itself the first time it saves you from an expensive loan.
Frequently Asked Questions
- How is my monthly business loan payment calculated?
- The calculator uses the standard amortization formula: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments (term in years × 12). It assumes a fixed-rate, fully-amortizing loan.
- What's the difference between APR and interest rate for business loans?
- The interest rate is the cost of borrowing the principal. APR (annual percentage rate) includes both the interest rate and any required fees expressed as a yearly rate, so APR is the better number for comparing offers.
- Can this calculator handle balloon payments or interest-only loans?
- No. It assumes a standard fully-amortizing fixed-rate loan with equal monthly payments. For balloon loans, interest-only periods, or SBA-specific structures, ask your lender for an amortization schedule that reflects those terms.
- Is this business loan calculator free?
- Yes. The calculator is free to use with no signup required, so you can compare multiple loan amounts, rates, and terms.