Business Loan Calculator
Loan Details
Results
| Monthly Payment | — |
|---|---|
| Total Interest | — |
| Total Payment | — |
How to Use This Business Loan Calculator
Cash flow projections live or die on the debt service line. Before signing an SBA term sheet or equipment note, I need the monthly hit and total interest over the full term—not a rough guess from the rate alone. Enter what the lender quoted and see whether the payment fits the P&L.
- Enter loan amount. Principal for working capital, equipment, or commercial real estate financing.
- Enter interest rate. Annual APR from your term sheet or pre-qualification.
- Enter loan term in years. Working capital often 1–5 years; equipment and CRE may run 7–25.
- Toggle amortization preview. See the first 12 months of principal vs interest.
- Press Calculate. Review monthly payment, total interest, and total payment.
Compare lease vs buy with the Lease Calculator, or model asset write-down with the Depreciation Calculator.
Business Loan Formulas and Practical Applications
Commercial installment loans use the same amortization math as consumer loans, but amounts are larger, terms longer, and collateral often required. Debt service coverage—net operating income divided by annual payment—is what underwriters actually scrutinize.
Monthly payment
M = P × [ i(1 + i)ⁿ ] / [ (1 + i)ⁿ − 1 ]
A $100,000 working-capital loan at 8% over 7 years runs about $1,558/month.
Total cost of capital
Total Interest = (M × n) − P
That loan costs roughly $30,870 in interest—factor it against projected ROI on the capital deployed.
SBA and fee considerations
SBA loans may carry guarantee fees rolled into the note. This calculator uses the net amount financed—add fees to principal separately if your lender capitalizes them.
Frequently Asked Questions
What types of business loans can this calculator model?
Any fixed-rate commercial installment loan with equal monthly payments—working capital, SBA term loans, equipment financing, and similar products.
What term length should I enter?
Working capital loans often run 1 to 5 years. Equipment and real estate-backed loans may extend to 10 or 25 years. Enter the term quoted by your lender.
Are SBA guarantee fees included?
No. Enter the net loan amount. Origination fees, SBA guarantee fees, and prepayment penalties are not modeled.
What does the amortization preview show?
When enabled, the first 12 months of payment split between principal and interest plus remaining balance after each month.
How is this different from a personal loan calculator?
The math is identical, but business loans typically involve larger amounts, longer terms, and collateral requirements not reflected in the payment formula.