All Tools

Business Loan Calculator

Estimates monthly payments, total interest, and total cost for a business loan at any term and rate

Monthly Payment

Enter loan details to calculate your monthly payment

Total Interest

The total interest paid over the life of the loan

Total Cost

Principal plus total interest

Frequently Asked Questions

How is a business loan payment calculated?

Monthly payments use the amortization formula: M = P x [r(1+r)^n] / [(1+r)^n - 1], where P is principal, r is monthly rate (annual rate / 12), and n is total months. This gives equal monthly payments covering both principal and interest.

What is a good interest rate for a business loan?

Rates vary widely. Bank term loans range from 6-13%. SBA loans are typically 6-9%. Online lenders may charge 10-30%+. Your rate depends on credit score, time in business, revenue, collateral, and loan amount.

How long should my business loan term be?

Match the term to the asset's useful life. Equipment: 3-7 years. Working capital: 1-3 years. Real estate: 10-25 years. Shorter terms mean higher payments but less total interest. Longer terms reduce payments but cost more overall.