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  1. Home
  2. Financial Tools
  3. Business Loan Calculator

Business Loan Calculator

Calculate monthly payments, total interest, and compare business loan options. Includes SBA loans, term loans, and equipment financing.

Formula:PMT = P × r(1+r)^n / ((1+r)^n - 1)

Loan Summary

Monthly Payment

$2,076

5 year term

Total Interest

$24,550

Loan Amount$100,000
Total Payment$126,550
Effective APR9.87%
Fees$2,000

Loan Details

Loan type and amount

Term Loan

Traditional fixed-term business loan

Typical rate: 6-30% • Term: 1-10 years

$

Loan Terms

Interest rate, term length, and fees

%
325
years
%

Cost Breakdown

Principal, interest, and fees allocation

Principal

$100,000

Interest

$24,550

Fees

$2,000

Balance Over Time

Rate Comparison

RateMonthlyTotal InterestTotal Cost
6%$1,933$15,997$117,997
8%$2,028$21,658$123,658
10%$2,125$27,482$129,482
12%$2,224$33,467$135,467
15%$2,379$42,740$144,740

First 12 Months

MonthPaymentPrincipalInterestBalance
1$2,076$1,326$750$98,674
2$2,076$1,336$740$97,338
3$2,076$1,346$730$95,993
4$2,076$1,356$720$94,637
5$2,076$1,366$710$93,271
6$2,076$1,376$700$91,894
7$2,076$1,387$689$90,508
8$2,076$1,397$679$89,111
9$2,076$1,408$668$87,703
10$2,076$1,418$658$86,285
11$2,076$1,429$647$84,856
12$2,076$1,439$636$83,417

What if you extended the loan term?

See how longer terms affect your monthly payment and total interest

1 years5 years15 years
Monthly Payment
$2,076+$0/mo

Personalized Insights

1 insight based on your inputs

Cash Flow Check

Your monthly payment of $2,076 should ideally be less than 20% of monthly revenue. This means you'd need roughly $10,379/month in revenue to comfortably service this debt.

Related Calculators

Explore other tools that might help

ROI Calculator

Calculate return on investment

NPV Calculator

Net present value analysis

Loan Calculator

General loan payment calculator

Amortization Calculator

Detailed payment schedule

View all finance calculators

Loan Summary

Monthly Payment

$2,076

5 year term

Total Interest

$24,550

Loan Amount$100,000
Total Payment$126,550
Effective APR9.87%
Fees$2,000

Quick Answer

The business loan calculator at practicalwebtools.com helps you calculate monthly payments and total cost for SBA loans, term loans, and commercial financing. Enter your loan amount, interest rate, and term to see your payment schedule and plan your business cash flow.

Key Facts

  • SBA 7(a) loan rates: Prime + 2.25% to 4.75% (currently 11-14%)
  • Traditional bank business loan rates: 7-15% depending on credit
  • Online lender rates: 10-45% for short-term business loans
  • SBA loan terms: up to 25 years for real estate, 10 years for equipment
  • Most term loans require 2+ years in business and $100K+ revenue
  • Equipment loans can use the equipment as collateral for better rates
  • Line of credit: Pay interest only on what you draw

Frequently Asked Questions

Term loans (lump sum with fixed payments), SBA loans (government-backed, lower rates), equipment financing (secured by equipment), lines of credit (revolving), invoice factoring, and merchant cash advances. Each has different rates, terms, and qualification requirements.

Term loans, SBA loans, equipment financing, lines of credit, invoice factoring, merchant cash advances.

Requirements vary by lender: SBA loans typically need 680+, traditional bank loans 700+, online lenders 550-600+. Higher scores get better rates. Lenders also consider business revenue, time in business, and cash flow.

SBA: 680+, banks: 700+, online lenders: 550+. Higher scores = better rates.

Most use standard amortization: Payment = P × [r(1+r)^n] / [(1+r)^n-1], where P=principal, r=monthly rate, n=term months. SBA loans may have variable rates tied to prime. Lines of credit often have interest-only periods.

Standard amortization formula. SBA may have variable rates. Lines of credit can be interest-only.

Common fees include: origination (0.5-5% of loan), closing costs, appraisal fees, legal fees, and prepayment penalties. SBA loans have guarantee fees (0-3.75%). Always ask for the total cost and APR, not just the interest rate.

Origination 0.5-5%, closing costs, SBA guarantee fees 0-3.75%. Ask for total APR.

SBA loans have lower rates and longer terms but take 30-90 days to close and have strict requirements. Traditional loans close faster but may have higher rates. Consider SBA for larger amounts and longer terms, traditional for speed.

SBA: lower rates, longer terms, slower (30-90 days). Traditional: faster, higher rates.

Loan Summary

Monthly Payment

$2,076

5 year term

Total Interest

$24,550

Loan Amount$100,000
Total Payment$126,550
Effective APR9.87%
Fees$2,000