Enter your loan amount, interest rate, and term to see the monthly payment, total interest paid, and the full cost of the loan.
A business loan calculator turns a loan amount, interest rate, and term into the numbers that actually matter: your fixed monthly payment and the total interest you will pay over the life of the loan. It works for term loans, equipment financing, SBA loans, and most fixed-rate amortizing business debt.
Monthly payments follow the standard amortization formula: Payment = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments (years × 12). Each payment covers that month's interest first, with the remainder reducing the principal balance.
A longer term lowers the monthly payment but raises the total interest you pay, sometimes substantially. A $50,000 loan at 9% costs far less in total interest over 3 years than over 7, even though the longer term feels more affordable month to month. This calculator shows both so you can weigh cash flow against total cost.
Tip: Don't forget origination fees. A 3% origination fee on a $50,000 loan is $1,500 deducted upfront or added to your balance. Factor fees into the true cost, since they can meaningfully raise the effective APR.
The interest rate covers only the cost of borrowing the principal, while APR also folds in fees, giving a fuller picture of the loan's true cost. When comparing offers, compare APRs rather than headline rates. Also confirm whether the loan has prepayment penalties — paying down principal early can save significant interest if the lender allows it without penalty.