Business Loan Calculator
Calculate loan payments, interest costs, and cash flow impact for business financing
Loan Details
Total amount to borrow
Upfront payment
Annual interest rate
Loan duration
Additional Options
Upfront loan fees
Additional principal payment
Business Loan Calculator: Monthly Payments, Total Cost & Loan Comparison
Our Business Loan Calculator computes monthly payments, total interest cost, and amortization schedules for commercial loans, SBA financing, equipment loans, and lines of credit. Compare loan options side-by-side to find the most cost-effective financing for your business.
Business Loan Types Comparison
| Loan Type | Amount Range | Term | Typical Rate | Best For |
|---|---|---|---|---|
| SBA 7(a) | Up to $5M | 7–25 years | Prime + 2.25–2.75% | General business, working capital |
| SBA 504 | Up to $5.5M | 10–25 years | Below-market fixed | Real estate, equipment ≥ $150K |
| SBA Microloan | Up to $50K | Up to 6 years | 8–13% | Startups, small businesses |
| Bank Term Loan | $25K–$500K | 2–10 years | 6–20% | Established businesses, expansion |
| Business Line of Credit | $10K–$1M | Revolving | 7–25% | Working capital, cash flow gaps |
| Equipment Financing | Up to equipment value | 3–7 years | 6–20% | Machinery, vehicles, technology |
| Invoice Factoring | 80–90% of invoices | Rolling | 1–5%/month | B2B businesses with slow payers |
How to Use the Business Loan Calculator
- Enter loan amount — input the total amount you need to borrow in dollars.
- Set the interest rate — enter the annual interest rate (APR) quoted by your lender. For variable-rate loans, use the current index + margin.
- Enter loan term — input the repayment period in years or months.
- Choose payment frequency — select monthly (standard), bi-weekly, or weekly payments.
- Review results — check the monthly payment, total interest paid over the life of the loan, and the full amortization schedule showing principal vs interest each payment.
Example Calculations
Example 1 — SBA 7(a) Loan: $250,000 at 8.5% for 7 Years
- Monthly rate: 8.5% ÷ 12 = 0.7083%
- n = 84 payments
- Monthly payment = $3,918
- Total interest = (84 × $3,918) − $250,000 = $79,112
Example 2 — Equipment Loan: $50,000 at 12% for 4 Years
- Monthly payment = $1,315
- Total repaid = 48 × $1,315 = $63,120
- Total interest = $13,120 (26% of principal in interest costs)
Frequently Asked Questions
What credit score do I need for a business loan?
Requirements vary by lender and loan type. SBA 7(a) loans typically require a personal credit score of 680+ and a business credit score above 155 (Dun & Bradstreet scale). Traditional bank loans generally require 680–720+ personal credit. Online lenders are more flexible — some approve borrowers with 550+ personal credit but charge significantly higher rates. Business credit history (Dun & Bradstreet PAYDEX, Experian Business) also matters for larger loan amounts.
What is debt service coverage ratio (DSCR) and why does it matter?
DSCR = Net Operating Income ÷ Total Annual Debt Service. Lenders typically require a DSCR of 1.25 or higher, meaning your business earns $1.25 for every $1.00 of debt payments. A DSCR below 1.0 means your income does not cover debt payments. For SBA loans, the minimum is usually 1.15–1.25. Calculate it before applying: if it falls short, you may need to adjust the loan amount or term.
What is the difference between APR and interest rate for business loans?
The interest rate is the annual cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate plus all fees — origination fees, packaging fees, guarantee fees (SBA charges up to 3.5%), and other closing costs — expressed as a single annualized percentage. APR is the more accurate comparison metric when evaluating multiple loan offers. A loan with a lower interest rate but high fees can have a higher APR than one with a slightly higher rate and minimal fees.
Can I pay off a business loan early?
Many business loans allow early payoff, but prepayment penalties may apply. SBA 7(a) loans with terms over 15 years have prepayment fees for the first three years (5%, 3%, then 1% of amount prepaid). Standard bank term loans may have 1–3% penalties. Online lenders vary widely — some factor-rate products (merchant cash advances) charge a fixed fee regardless of payoff timing. Always check the loan agreement before making extra principal payments.
What is an SBA loan and how do I qualify?
SBA (Small Business Administration) loans are government-backed loans made by approved lenders with the SBA guaranteeing a portion (75–85%) of the loan, which lowers lender risk and allows better terms for borrowers. To qualify for SBA 7(a): must be a for-profit U.S. business, meet SBA size standards (typically under 500 employees), be unable to obtain financing on reasonable terms elsewhere, and have invested equity in the business. Apply through an SBA-approved lender; the SBA itself does not lend money directly.
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