Free Business Calculator
Free Tool — No Signup Required

Business Loan
Calculator

Get your exact monthly payment, total interest, and full amortization schedule in seconds.

🏦

Loan Calculator

Adjust the values below to match your loan

Loan Type
🏢
Term Loan
🇺🇸
SBA Loan
💳
Line of Credit
Loan Amount $50,000
$
Annual Interest Rate 8.5%
%
Loan Term 5 years
Monthly Payment
—
for — months
Principal
—
Total Interest
—
Total Cost
—
Effective Rate
—
Principal Interest

What This Calculator Shows

Enter your loan amount, interest rate, and term to instantly see your monthly payment and exactly how much the loan will cost you in total — including all interest paid over the life of the loan.

The amortization schedule breaks down every single payment so you can see exactly how much goes to principal vs interest each month.

Tips to Get a Better Rate

1
Build your business credit score before applying — aim for 80+ on the PAYDEX scale.
2
Compare at least 3 lenders. SBA loans typically offer the lowest rates for qualifying businesses.
3
A shorter loan term means higher monthly payments but significantly less interest paid overall.
4
Offering collateral can reduce your rate by 1–3%. Equipment and real estate work best.

Average Business Loan Rates

SBA 7(a) Loans: 10.5–13% (2024)

Traditional Bank Loans: 6–13%

Online Lenders: 7–30%

Business Lines of Credit: 8–24%

Rates vary by creditworthiness, collateral, and loan term. Always compare multiple offers.

Frequently Asked Questions

How is the monthly payment calculated?
This calculator uses the standard amortization formula: M = P[r(1+r)^n]/[(1+r)^n-1], where P is the principal, r is the monthly interest rate, and n is the number of payments. This is the same formula banks use.
What's the difference between a term loan and an SBA loan?
A term loan is a lump sum you repay over a fixed period. An SBA loan is government-backed, offering lower rates and longer terms — but requires more paperwork and takes longer to approve.
Can I pay off my business loan early?
Most business loans allow early payoff, but some charge prepayment penalties — especially SBA loans. Always check your loan agreement for prepayment terms before paying early.
How much can I borrow for my business?
Most lenders offer $10,000 to $5 million depending on revenue, credit score, and time in business. SBA loans go up to $5 million. Online lenders are more flexible but charge higher rates.
What credit score do I need for a business loan?
Traditional banks typically require 680+. SBA loans require 620+. Online lenders may approve 550+, but at significantly higher rates. Your business credit score also matters.
Is this calculator accurate?
Yes for standard amortizing loans. Results may differ slightly for loans with origination fees, balloon payments, or variable rates. Always confirm final figures with your lender.