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Business Loan Calculator
About the Business Loan Calculator
Estimate the monthly payment and total cost of a business loan, including an upfront origination or SBA guaranty fee.
How to use the Business Loan Calculator
- Enter the Loan Amount ($), Interest Rate (%) and choose the Loan Term.
- Open the fee option and enter the Upfront Origination Fee (%) if there is one.
- Press Calculate Amortization to see the payment, total interest and schedule.
Formula and method
Payment = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1). Fees are added to the cost of borrowing and raise the effective APR.
When to use the Business Loan Calculator
- Estimating repayments on a small business loan.
- Comparing lenders, terms and interest rates.
- Checking whether projected cash flow can support the repayments.
Common mistakes to avoid
- Ignoring fees, personal guarantees and early repayment charges.
- Borrowing for a long term to fund something that will not last as long.
Tips
- Compare lenders on APR, which includes fees.
- Check whether the lender requires collateral or a personal guarantee.
- Make sure your cash flow covers the payment with room to spare.
Frequently Asked Questions
Terms depend on the loan purpose: shorter for working capital and equipment, up to 25 years for real estate.
Usually accounts or tax returns, bank statements, a business plan and identification.