Calculator
Business loan payment calculator: payment, interest and true cost
Estimate the payment on a term loan, SBA loan, equipment loan or line of credit draw, see how much interest you will pay, and what an origination fee really does to your rate.
Business loan payment calculator
Works for term loans, SBA loans, equipment financing and lines of credit with a fixed repayment.
24 to 60 months is common for term loans
Deducted from the loan proceeds
Shows the payment as a share of your monthly deposits
| Year | Payments | Principal paid | Interest paid | Balance at year end |
|---|
Illustrative estimate, not an offer. Assumes a fixed rate, equal payments and no prepayment. Your rate, fees and term depend on the lender and your file.
How do you calculate a business loan payment?
Divide the APR by the number of payments per year to get the periodic rate r, then use Payment = P × r ÷ (1 − (1 + r)^−n), where P is the loan amount and n is the number of payments. A $150,000 loan at 14% over 36 months works out to about $5,127 a month and roughly $34,559 in total interest.
How to use the calculator
Enter the loan amount, the interest rate as an APR, the term in months and any origination fee. Choose the payment schedule on your offer: most bank and SBA loans pay monthly, while many online term loans debit weekly or every two weeks. Add monthly revenue to see what share of your deposits the payment takes.
You get the payment, the total interest, what you actually receive after fees, an effective APR that includes the fee, and a year-by-year schedule showing how fast the balance comes down.
The payment formula
Fixed-payment business loans amortize: each payment covers that period’s interest first, and the rest reduces the balance. Early payments are interest-heavy; later ones are mostly principal.
Worked example: $150,000 at 14%
| Term | Monthly payment | Total interest | Total of payments |
|---|---|---|---|
| 24 months | $7,201.93 | $22,846 | $172,846 |
| 36 months | $5,126.64 | $34,559 | $184,559 |
| 60 months | $3,490.24 | $59,414 | $209,414 |
Illustrative, fixed rate, no fees. A 3% origination fee on the 36-month loan leaves $145,500 in proceeds and lifts the effective APR to about 16.2%.
The trade-off is always the same: stretching the term cuts the payment by a third or more, but the total interest can nearly double. Pick the shortest term your cash flow can carry comfortably in a slow month.
How lenders judge whether you can afford it
Banks, SBA lenders and most term-loan funders measure debt service coverage: how many times your cash flow covers all your debt payments, including the new one. They also look at time in business, credit, and your business bank statements.
- Existing payments count. An open merchant cash advance or equipment note reduces what you can borrow. See funding with an existing MCA.
- Credit shapes the rate. Stronger scores price lower; below the mid-600s the options narrow. See strong revenue with a 550 score.
- History matters. Two years or more opens term loans and SBA loans; newer businesses usually start with revenue-based products.
Which products this calculator fits
Use it for business term loans, SBA 7(a) loans, equipment financing, and a line of credit draw repaid over a fixed period. For a merchant cash advance priced with a factor rate, use the factor rate calculator instead, then put both side by side in the funding comparison tool.
Common questions
What is a typical interest rate on a business loan?
It depends on the product and the file. SBA 7(a) loans are among the lowest-cost options and have rate caps tied to the Prime Rate; online term loans and lines of credit price higher, and revenue-based products higher still.
Does an origination fee change my APR?
Yes. The fee is usually taken from the proceeds, so you pay interest on the full amount while receiving less. On a 36-month loan at 14%, a 3% fee raises the effective APR to roughly 16.2%.
Is a weekly payment cheaper than monthly?
Slightly, because the balance falls faster, but the difference is small. The bigger question is cash flow: weekly debits suit businesses with steady weekly deposits.
Can I pay a business loan off early?
Many term loans allow it and you save the remaining interest, but some carry prepayment penalties. Check the agreement before you sign.
See what you qualify for
One application, about five minutes, soft pull only. A funding specialist comes back with the offers you qualify for — and explains every term before you sign.