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.
Pro tip: Business loans typically range from 5% to 30% APR depending on your credit score, revenue, and time in business. This calculator uses standard amortization—actual payments may vary slightly based on lender fees.
How much do you want to borrow?
Check with your lender or search typical rates for your credit profile
Select or enter a custom loan term
Enter loan details to see your results
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Business Loan Payment Examples
| Example | Result |
|---|---|
| $50,000 loan, 8% APR, 5 years | $1,013.82/mo |
| $100,000 loan, 12% APR, 7 years | $1,765.27/mo |
| $25,000 loan, 6% APR, 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.
Consider this: a $50,000 loan at 8% APR over 5 years costs $1,013.82 per month and $10,829.18 in total interest. The same $50,000 at 12% APR over 5 years costs $1,112.22 per month and $16,733.34 in total interest. The higher rate adds $98.40 to the monthly payment and $5,904.16 to the total interest. Always compare total interest, not just monthly payments.
Loan term matters enormously. A 10-year loan feels safer because the payments are lower, but you'll pay significantly more in interest over time compared to a 5-year loan. If your business can afford the higher payments of a shorter term, it's almost always the better financial move.
The interest rate you actually get depends on your credit profile, time in business, annual revenue, and the type of lender you use. Traditional bank loans often offer the lowest rates (5-10% for qualified borrowers) but have strict requirements and slow approval. Online lenders offer faster approval but rates can run 15-30% APR for newer businesses or lower credit scores.
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.