The Business Loan Calculator calculates the payback amount and the total costs of a business loan. The calculator can also take the fees into account to determine the true annual percentage rate, or APR for the loan.
Modify the values and click the calculate button to use
Financing a business decision well starts with knowing what the loan truly costs your cash flow each month. A business loan calculator takes your loan amount, interest rate, and term, then shows the monthly payment and total interest so you can judge whether the numbers work. This matters because business borrowing spans a wide range: SBA 7(a) loans run roughly 9.75% to 14.75% in 2026 with prime at 6.75%, while SBA 504 loans for real estate sit near 5% to 7%. Terms can stretch from a couple of years to 25, dramatically changing the payment. This business loan calculator lets you test scenarios before you apply, so you commit only to debt your revenue can comfortably support.
This business loan calculator estimates the monthly payment and total cost of financing for your company, whether it's an SBA loan, a conventional term loan, or equipment financing. You enter the loan amount, the interest rate, and the repayment term, and it returns your monthly payment, total interest, and total repayment. Because business loans often carry fees, such as the SBA guarantee fee or packaging costs, the tool lets you include them to reveal your real borrowing cost. It's built for US business owners weighing expansion, equipment, working capital, or a real estate purchase. By showing the payment against a long or short term, it helps you balance affordable monthly outflow against the total interest your business will ultimately pay.
Enter the loan amount your business needs to borrow.
Input the annual interest rate, such as a current SBA 7(a) rate around 10% to 11%.
Choose your repayment term, which can range from 1 to 25 years depending on the loan.
Add any fees, like an SBA guarantee fee or origination cost, to see the true total.
Click calculate to view your monthly payment, total interest, and total repayment.
Adjust the term or rate to compare financing options and protect your cash flow.
The calculator uses the standard amortization formula that governs most business term loans. It converts your annual rate to a monthly rate by dividing by 12, then solves for the fixed payment that repays the loan over the term: payment = principal × r ÷ (1 − (1 + r)^−n), where r is the monthly rate and n is the number of payments. Each month, interest accrues on the outstanding balance, your payment covers it, and the remainder cuts principal. Longer terms lower the monthly payment but raise total interest, a critical trade-off for cash-flow planning. If your loan includes fees rolled into the principal, the calculator adds them before computing the payment, so the figure reflects what your business will actually owe.
If you're eyeing an SBA loan, understanding the structure saves confusion later. SBA 7(a) loans, the most common type, are tied to the Wall Street Journal prime rate, 6.75% in 2026, plus a lender spread the SBA caps by loan size. Smaller loans carry larger allowable spreads, so a $50,000 loan can hit a higher rate than a $400,000 one. SBA 504 loans, used for real estate and heavy equipment, blend a bank portion with a fixed CDC portion tied to Treasury rates, landing near 6% to 7%. These loans also carry guarantee fees and longer approval timelines, often weeks. The payoff is competitive rates and long terms, but the calculator's fee field matters here, since SBA fees meaningfully affect your real cost.
Not every business need calls for a term loan, and picking wrong costs money. A term loan delivers a lump sum you repay on a fixed schedule, ideal for a one-time investment like buying equipment, acquiring a competitor, or purchasing real estate. A line of credit, by contrast, lets you draw and repay repeatedly up to a limit, charging interest only on what you use, which suits fluctuating needs like seasonal inventory or bridging slow-paying invoices. This calculator models term loans, where a predictable payment aids planning. If your need is recurring or unpredictable, a line of credit may serve better, even though its variable balance makes the cost harder to project. Borrow the structure that fits the purpose, not just the cheapest headline rate.
Lenders won't just look at your credit; they'll test whether your business actually generates enough to repay. The key metric is the debt service coverage ratio, or DSCR, which divides your annual net operating income by your annual debt payments. A DSCR of 1.25 means you earn $1.25 for every $1 of debt service, and most lenders want at least 1.15 to 1.25. Here's why it matters to you before you apply: if the calculator shows a monthly payment your cash flow can't cover at that ratio, the loan likely won't be approved, or it shouldn't be taken. Run your estimated payment against your real monthly profit. If the cushion is thin, choose a longer term to lower the payment, or borrow less, rather than straining the business.
A bakery borrows $150,000 through an SBA 7(a) loan at 10.5% over 10 years to expand. The monthly payment comes to about $2,024, and total interest over the decade is roughly $92,900, making total repayment near $242,900. The owner checks DSCR: with monthly net income of $3,200, the ratio is about 1.58, comfortably above the 1.25 lenders prefer.
A contractor finances $60,000 in equipment at 12% over 5 years. The monthly payment is about $1,335, with total interest around $20,100. When the owner tests a 7-year term instead, the payment drops to roughly $1,059, easing monthly cash flow, but total interest climbs to about $28,900, an extra $8,800 for the breathing room.
Match the loan term to the life of what you're financing, so you're not paying for equipment long after it's gone.
Calculate your DSCR before applying, since lenders use it to decide approval and you should use it to avoid overextending.
Include SBA guarantee fees and packaging costs in your calculation to see the true cost of borrowing.
Compare a shorter term's interest savings against the cash-flow relief of a longer term before deciding.
Watch for variable-rate SBA loans, since a rising prime rate increases your payment over time.
Borrow only what the business genuinely needs, because excess debt drags on cash flow even at a good rate.
A business loan calculator estimates your monthly payment, total interest, and total repayment from your loan amount, rate, and term. It helps you judge whether the payment fits your company's cash flow before applying.
In 2026, SBA 7(a) loans range from about 9.75% to 14.75% depending on loan size, tied to the 6.75% prime rate plus a capped spread. SBA 504 loans for real estate sit lower, around 5% to 7%.
Business term loans use a standard amortization formula that spreads principal and interest into equal monthly payments over the term. Interest accrues on the remaining balance each month, and the rest of the payment reduces principal.
Most lenders want a debt service coverage ratio of at least 1.15 to 1.25, meaning your business earns at least $1.15 to $1.25 for every $1 of debt payment. A higher ratio improves approval odds and terms.
Choose a term loan for a one-time investment like equipment or real estate, where a fixed payment aids planning. A line of credit suits recurring or unpredictable needs, charging interest only on what you draw.
Yes. SBA guarantee fees, packaging fees, and origination costs add to your borrowing cost and can be rolled into the principal. Including them in your calculation reveals the loan's true total expense.
Brief disclaimer: This calculator provides estimates for educational and planning purposes only. Actual loan rates, terms, and fees depend on your lender, credit profile, business financials, and SBA guidelines. Results should be treated as planning guidance rather than financial or business advice.