Calculate monthly payments, total interest, and total repayment for a standard amortizing business loan. Model any amount, rate, and term to find the structure that fits your cash flow.
Frequently Asked Questions
How is the monthly payment calculated?
Standard amortizing loan formula based on loan amount, APR, and term. Each payment includes principal and interest; the interest share shrinks over time as the balance falls.
What interest rate should I use?
Bank business loans in 2026 typically run 8–14% APR. Online/non-bank business loans price at 15–30%+. SBA 7(a) loans price around 10.5–13%.
Does this calculator include fees?
No — principal and interest only. Add origination fees (1–5% of loan amount) and closing costs to estimate true total cost of capital.
What loan term should I choose?
Shorter terms mean higher monthly payments but lower total interest. Longer terms reduce monthly payment but increase total interest. Match the term to the useful life of what you're financing.
Can I use this for any business loan type?
Yes for standard amortizing term loans. Use the MCA calculator for factor-rate products and apply this only to drawn balances on a line of credit.
What credit score do I need for a business loan?
Bank business loans typically require 680+ FICO. Online lenders may work with 600+. SBA loans target 680+. Higher scores translate to lower rates.
Are business loan payments tax deductible?
Interest on a legitimate business loan is generally tax deductible as a business expense; principal is not. Consult your tax advisor.
How long does a business loan take to fund?
Online lenders fund in 1–7 business days. Banks take 2–6 weeks. SBA loans take 30–120 days.
Do business loans require collateral?
Loans over ~$50K often require collateral — business assets, real estate equity, or a UCC-1 blanket lien. Smaller loans may be unsecured but typically require a personal guaranty.
Can I pay off a business loan early?
Most amortizing business loans allow early payoff with interest savings. Check for prepayment penalties — some lenders charge 1–5% in the first 1–3 years.