Free tool · Money & pricing
Business loan calculator
Enter the loan amount, interest rate and term to see your monthly payment, total interest and the full cost of borrowing — including any upfront fee that comes out of the money you receive. It works for SBA 7(a) loans, microloans, bank term loans and equipment loans with fixed monthly payments.
Monthly payment
$1,062
60 payments at 10.00% APR.
- Total interest
- $13,741
- Upfront fees
- $1,000
- Total cost of borrowing
- $14,741
- Cash you actually receive
- $49,000
- Total repaid
- $63,741
| Year | Principal paid | Interest paid | Balance left |
|---|---|---|---|
| 1 | $8,113 | $4,635 | $41,887 |
| 2 | $8,963 | $3,785 | $32,924 |
| 3 | $9,902 | $2,847 | $23,022 |
| 4 | $10,938 | $1,810 | $12,084 |
| 5 | $12,084 | $664 | $0 |
Formulas (fixed-rate, monthly payments)
- r = Annual rate ÷ 12 ÷ 100; n = Years × 12
- Monthly payment = P × r ÷ (1 − (1 + r)^−n) (P ÷ n if the rate is 0)
- Total interest = Monthly payment × n − P
- Upfront fees = P × Fee %; Amount received = P − Upfront fees
- Total cost of borrowing = Total interest + Upfront fees
Worked example
A landscaping company borrows $50,000 at 10% for 5 years to buy a truck and mowers. The monthly payment is $1,062.35. Over 60 payments the company repays $63,741, so interest totals $13,741.
The lender charges a 3% fee taken from the proceeds, so only $48,500 lands in the bank account while the full $50,000 is repaid. Total cost of borrowing: $15,241.
The amortization table shows why early payoff saves less than people expect late in the loan: in year 1 about $4,635 of payments is interest, but by year 5 it is only about $664.
SBA loans in brief
The SBA does not usually lend directly; it guarantees part of loans made by approved lenders, which makes banks more willing to lend to small businesses.
- SBA 7(a) — the general-purpose program for working capital, equipment, real estate or buying a business.
- SBA microloans — smaller loans made through nonprofit intermediaries, often paired with business coaching.
- 504 loans — long-term financing for major fixed assets such as buildings and heavy equipment.
SBA loan rates are set relative to the prime rate, with maximums that depend on the loan size and term. Rates change with the market, so check current limits on sba.gov and get a quote from the lender before relying on any number in this calculator.
What lenders look at
Expect questions about time in business, revenue, profit, personal credit, collateral and how the loan will be repaid. A short plan showing that monthly cash flow comfortably covers the payment — this calculator gives you that number — makes the conversation easier.
This page is general information, not financial or legal advice. Variable-rate loans, interest-only periods and balloon payments will not match the fixed-payment math above.
Frequently asked questions
How do I calculate a monthly business loan payment?
Use the amortization formula: payment = P × r ÷ (1 − (1 + r)^−n), where P is the loan amount, r is the annual rate divided by 12, and n is the number of monthly payments. A $50,000 loan at 10% over 5 years is $1,062.35 a month.
What are current SBA loan interest rates?
SBA loan rates are negotiated with the lender and capped at a spread over the prime rate that varies with loan size and term. Because prime changes, check sba.gov and ask lenders for current quotes.
Does the loan fee affect my payment?
Usually not — payments are based on the full loan amount. A fee deducted from the proceeds means you receive less cash while repaying the same amount, which raises your true cost of borrowing.
How much of a business loan can I afford?
Start from cash flow: many owners want monthly profit to cover the loan payment with room to spare. Enter different amounts and terms here and compare the payment to your average monthly profit.