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Business Loan Calculator

Work out the payment on a business loan or SBA loan, with monthly, biweekly or weekly payments, total interest, the cost of origination fees and the APR.

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This assumes a fixed rate and equal payments. Some business lenders quote a ‘factor rate’ instead of an interest rate, or charge daily payments; ask for the APR and the total repayment to compare offers.

Quick Answer

Business loan payment = loan × r ÷ (1 − (1 + r)^−n), where r is the rate per payment and n is the number of payments. A $100,000 loan at 9% for 5 years costs $2,075.84 a month, with $24,550.13 of interest. A 3% origination fee adds $3,000 and lifts the APR to about 10.31%.

Last updated: 10 November 2026 ·How we calculate this: the standard amortizing loan payment formula

How This Business Loan Calculator Works

Enter the loan amount, interest rate, term and how often you will pay. The calculator gives the payment, the total interest and the total you will repay. If the lender charges an origination fee or other upfront costs, enter them as a percentage of the loan: the calculator shows the cash you actually receive and the APR, which includes those fees.

Quick explanation: the APR is the interest rate plus fees, as a yearly rate.

  • Interest rate: the cost of borrowing the money.
  • Fees: origination, packaging or guarantee fees taken when the loan is made.
  • APR: lets you compare loans with different fees on equal terms.

How to Use the Business Loan Calculator

  1. Enter the loan amount.
  2. Enter the yearly interest rate and the term in years.
  3. Choose monthly, biweekly or weekly payments.
  4. Optionally, enter upfront fees as a percentage of the loan.
  5. Press Calculate to see the payment, interest, total cost and APR.

Business Loan Formulas

  • Rate per payment: r = annual rate ÷ payments per year
  • Number of payments: n = years × payments per year
  • Payment: loan × r ÷ (1 − (1 + r)^−n)
  • Total interest: payment × n − loan
  • APR: the yearly rate at which the payments equal the cash received after fees

Key Terms

  • Principal: the amount you borrow.
  • Term: how long you have to repay the loan.
  • Origination fee: a fee for setting up the loan, often a percentage taken from the amount you receive.
  • APR: the annual percentage rate, the interest rate plus fees charged when the loan is made.
  • Amortization: paying off a loan with regular payments that cover interest and principal.

Worked Example

A café borrows $50,000 at 12% for 3 years, paid weekly, with a 2% fee.

  • r = 12% ÷ 52 = 0.2308% a week, n = 3 × 52 = 156 payments
  • Weekly payment = $382.02
  • Total interest = $9,595.89, plus a $1,000 fee
  • The café receives $49,000, so the APR is about 13.43%

Real-Life Examples

  • Expansion loan: $100,000 at 9% for 5 years is $2,075.84 a month.
  • Equipment: $40,000 at 7.5% over 4 years is $967.16 a month.
  • Weekly payments: $50,000 at 12% over 3 years is $382.02 a week.
  • Term trade-off: $100,000 at 9% costs $52,011 in interest over 10 years, against $24,550 over 5.

Interest Rate vs Factor Rate

  • Interest rate: charged on the balance as you pay it down, so interest falls over time.
  • Factor rate: a fixed multiple of the loan, such as 1.2 (you repay $120,000 on $100,000), charged up front.
  • Comparing: a factor rate on a short loan can mean a very high APR. Ask for the APR and total repayment.

Monthly Payment per $100,000

Rate3 years5 years7 years10 years
6%$3,042$1,933$1,461$1,110
8%$3,134$2,028$1,559$1,213
10%$3,227$2,125$1,660$1,322
12%$3,321$2,224$1,765$1,435
15%$3,467$2,379$1,930$1,613

Types of Business Loans

  • Bank term loans: fixed payments over 1 to 10 years, usually the lowest rates for established firms.
  • SBA 7(a) loans: partly guaranteed by the US Small Business Administration, up to $5 million.
  • Equipment loans: secured by the equipment you buy, often matching its useful life.
  • Online and short-term loans: fast approval but often higher rates, factor rates and daily or weekly payments.
  • Lines of credit: borrow and repay as needed; interest is charged only on what you use.

Common Mistakes to Avoid

  • Comparing interest rates only. Fees can make a lower rate cost more; compare APRs.
  • Forgetting fees are taken up front. You may receive less cash than the loan amount.
  • Confusing a factor rate with an interest rate. A 1.2 factor is not 20% a year.
  • Picking the longest term by habit. Lower payments can mean much more interest.
  • Ignoring payment frequency. Weekly or daily payments affect your cash flow.

Frequently Asked Questions

Use payment = loan × r ÷ (1 − (1 + r)^−n), with r the rate per payment and n the number of payments.

It depends on the lender, your credit, the loan type and market rates. Banks and SBA loans are usually lower than online lenders.

The yearly cost of the loan including fees taken when it is made, such as origination charges.

It varies, often a few percent of the loan. Enter it to see its effect on the APR.

The SBA says the maximum 7(a) loan amount is $5 million.

At the same yearly rate, more frequent payments reduce interest slightly, but they take cash out of the business more often.

Often yes, but check for a prepayment penalty in the agreement.

A fixed multiple of the amount borrowed, common on merchant cash advances. It is not the same as an interest rate.

Business interest is often deductible, but limits apply. Ask a tax professional.

References & Sources

SourceUsed ForLink
OpenStax, Contemporary Mathematics, 6.8 The Basics of Loans Loan payment (PMT) formula and amortization. https://openstax.org/books/contemporary-mathematics/pages/6-8-the-basics-of-loans
Consumer Financial Protection Bureau, Interest rate vs APR APR is the interest rate plus fees charged with the loan. https://www.consumerfinance.gov/ask-cfpb/what-is-the-difference-between-a-loans-interest-rate-and-its-apr-en-733/
U.S. Small Business Administration, 7(a) loans Uses of 7(a) loans and the $5 million maximum. https://www.sba.gov/loans/7a-loans/