Free business planning calculator
Business Loan Calculator
Calculate monthly payment, total interest, and total borrowing cost for SBA loans and business term loans. Free small business loan payment calculator with amortization breakdown.
Enter the minimum numbers needed to get a result.
Updated live as you type.
Planning estimate only. It does not include taxes, overhead allocation, depreciation, discounts, or other business-specific adjustments.
A business loan calculator estimates monthly payments, total interest, and total loan cost using the standard amortization formula: Monthly payment = P × [r(1+r)^n] ÷ [(1+r)^n − 1]. Enter loan amount, interest rate, and term to see your full repayment picture.
Formula and example
Monthly payment = P x [r(1+r)^n] / [(1+r)^n - 1] where P = principal, r = monthly rate, n = number of payments
A $100,000 business loan at 7% APR over 84 months has a monthly payment of $1,508.68, total interest of $26,729.12, and total cost of $126,729.12.
Methodology & assumptions
Last updated: 2026-06-12Calculation method
Uses the standard amortization formula for fixed-rate loans with equal monthly payments. Monthly rate is annual rate divided by 12 and converted to a decimal. Total interest is the sum of all payments minus the principal. If financing equipment specifically, compare buying vs leasing with our Equipment Buy vs Lease Calculator before committing to a loan.
Data sources
Uses the numbers you enter and standard small-business finance formulas. Benchmark comparisons use HustleFin industry benchmark pages where available.
Limitations
Assumes fixed interest rate and no early repayment. Does not include origination fees, collateral requirements, or other loan costs. Actual payments may vary for variable-rate loans.
Input definitions
- Loan amount: Total amount you plan to borrow.
- Annual interest rate: APR including all fees.
- Loan term (months): Total number of monthly payments. SBA 7(a) loans are often 84-120 months.
Frequently asked questions
What is the monthly payment formula for a business loan?+
Monthly payment = P × [r(1+r)^n] ÷ [(1+r)^n − 1], where P = principal, r = monthly interest rate (annual rate ÷ 12), n = number of monthly payments. Example: $100,000 at 7% APR over 84 months = $1,508.68/month.
What is a good interest rate for a business loan in 2026?+
SBA 7(a) loans: prime rate + 2.75-4.75% (roughly 10-13% in 2026, depending on Fed rate). Bank term loans: 6-12% for strong borrowers. Online lenders (Kabbage, Bluevine): 15-60%+ APR. Equipment loans: 5-15%. Rates vary by credit score, time in business, revenue, and collateral.
How long are SBA loan terms?+
SBA 7(a) loans: up to 10 years (120 months) for working capital, 25 years for real estate. SBA 504 loans: 10 or 25 years for equipment or real estate. SBA microloans: up to 6 years. Longer terms mean lower monthly payments but more total interest paid.
Should I include origination fees in the loan amount?+
If the lender rolls the origination fee into the loan balance (common with SBA loans), add it to the loan amount for accurate payment calculations. SBA 7(a) guarantee fees range from 0.5-3.5% of the guaranteed portion. If you pay fees at closing out of pocket, treat them as a separate cost.
What credit score do I need for a business loan?+
SBA 7(a) loans: typically 640-680+ personal credit score minimum, though 700+ improves terms. Bank term loans: usually 680-700+. Online business lenders: often 550-600+ with strong revenue. A DUNS/Paydex business credit score of 80+ (equivalent to a 700 personal score) also helps.
Should I take a shorter or longer loan term?+
Shorter term: lower total interest, higher monthly payment. Longer term: lower monthly payment, more total interest. Example: $100,000 at 8% — 36 months costs $13,360 interest ($3,132/mo). 84 months costs $31,498 interest ($1,559/mo). Choose shorter term if cash flow allows — use the savings to grow the business.
What is the difference between APR and interest rate on a business loan?+
The interest rate is the base cost of borrowing. APR (annual percentage rate) includes the interest rate PLUS all fees (origination, guarantee, packaging fees) expressed as a yearly rate. For comparison shopping, use APR — not the stated interest rate — since fees can significantly increase the effective cost.
Can I pay off a business loan early?+
Yes, but check for prepayment penalties. SBA 7(a) loans with terms ≥15 years have a prepayment fee if paid off in the first 3 years (5%, 3%, 1% in years 1, 2, 3). Shorter SBA loans and most bank term loans have no prepayment penalty. Early payoff reduces total interest significantly.
Related guides
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