Business Loan Calculator
Monthly payment · Total interest · Effective APR — for any loan type
A business loan calculator estimates your monthly payment, total interest cost, and effective APR for financing a business — whether a term loan, line of credit, equipment loan, SBA loan, or merchant cash advance. This tool uses the standard amortization formula lenders use, plus a payment-to-revenue check so you can gut-check affordability before you apply.
How Business Loan Payments Are Calculated
Term loans, equipment financing, and SBA loans all use standard amortization — the same formula behind mortgages and auto loans. Each payment covers interest on the outstanding balance plus a portion of principal, shifting more toward principal as the balance shrinks.
| Variable | Definition |
|---|---|
| M | Monthly payment |
| P | Principal — full loan amount (you repay this even if a fee was deducted) |
| r | Monthly interest rate = Annual APR ÷ 12 |
| n | Total number of monthly payments (term in months) |
Example: A $150,000 term loan at 11.5% APR for 60 months produces a monthly payment of roughly $3,296. With a 2.5% origination fee ($3,750), you receive $146,250 but still repay the full $150,000 principal plus interest — pushing the effective APR above the stated 11.5%.
⚠️ Expert Pro-Tip
Always run the SBA numbers before accepting an online lender's offer. Online and merchant-cash-advance lenders approve fast, but frequently price risk at 2–5× the cost of a bank or SBA loan. Before signing, plug your loan amount into the SBA 7(a) calculator — even accounting for weeks of extra underwriting time, the interest savings on a 5–10 year term often justifies the wait, especially for loans over $100,000.
Business Loan Calculator
Loan Details
Your Results
Amortization Schedule (First 12 Months)
| Mo | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $3,298.89 | $1,861.39 | $1,437.50 | $148,138.61 |
| 2 | $3,298.89 | $1,879.23 | $1,419.66 | $146,259.38 |
| 3 | $3,298.89 | $1,897.24 | $1,401.65 | $144,362.14 |
| 4 | $3,298.89 | $1,915.42 | $1,383.47 | $142,446.72 |
| 5 | $3,298.89 | $1,933.78 | $1,365.11 | $140,512.94 |
| 6 | $3,298.89 | $1,952.31 | $1,346.58 | $138,560.63 |
| 7 | $3,298.89 | $1,971.02 | $1,327.87 | $136,589.62 |
| 8 | $3,298.89 | $1,989.91 | $1,308.98 | $134,599.71 |
| 9 | $3,298.89 | $2,008.98 | $1,289.91 | $132,590.73 |
| 10 | $3,298.89 | $2,028.23 | $1,270.66 | $130,562.50 |
| 11 | $3,298.89 | $2,047.67 | $1,251.22 | $128,514.83 |
| 12 | $3,298.89 | $2,067.29 | $1,231.60 | $126,447.54 |
Showing first 12 of 60 months. Export CSV for full schedule.
Based on your results — what to do next:
Could an SBA loan beat this rate?
At 11.5%, this loan costs $47,933.47 in interest. SBA 7(a) loans are capped at Prime (6.75%) + a lender spread — often cheaper for qualifying borrowers.
Will lenders approve this payment?
Your $3,298.89/mo payment is 6.6% of monthly revenue — check your Debt Service Coverage Ratio to confirm lender approval odds.
Does this capital grow your business value?
Deploying $150,000 into growth can raise EBITDA — see how that shifts your 2026 business valuation multiple.