Small Business Loan Calculator
Before you borrow to start or grow a business, check what the loan costs each month and in total. Enter the amount, the yearly interest rate, the term in months and any upfront fees. The calculator uses standard fixed-payment amortization, the method most term loans use, and shows the monthly payment your business has to cover from profit. The starting values are examples, not a rate any lender offers.
Enter your numbers
The starting values are examples, not a lender's offer. Calculations stay in your browser.
Assumes a fixed rate and equal monthly payments. Real loans can have variable rates, other fees, balloon payments or a different payment schedule, so compare with the lender's own disclosure.
How the calculation works
- Monthly rate r = yearly interest rate ÷ 100 ÷ 12.
- Monthly payment = loan amount × r ÷ (1 − (1 + r)^−months). With a 0% rate, payment = loan amount ÷ months.
- Total repaid = monthly payment × months.
- Total interest = total repaid − loan amount.
- Total cost of borrowing = total interest + upfront fees.
The result is a planning scenario from the numbers you enter. It is not a forecast, a quote or tax advice.
Questions
Is the interest rate the same as the APR?
Not always. The rate you enter here is the yearly interest rate used to work out the payment. A lender’s APR can also include certain fees spread over the term. Enter fees separately in the fee field to see their effect on the total cost.
Why does a longer term cost more?
A longer term lowers the monthly payment, but interest is charged on the balance for more months, so total interest rises. Compare two terms side by side to see the trade-off.
Can my business afford the payment?
Compare the monthly payment with your expected monthly operating result before loan payments. Use the profit calculator or break-even calculator to estimate that result, and keep a reserve for slow months.
Does this work for a merchant cash advance or a line of credit?
No. Merchant cash advances use a factor rate and daily or weekly payments, and lines of credit charge interest only on what you draw. This calculator is for fixed-rate loans with equal monthly payments.
Can I put this calculator on my website?
Yes. Copy the embed code on this page. The embedded version keeps a small credit link to BizAI.
Embed this calculator
Add this free calculator to your blog, course or client resources. Paste the code into an HTML block. It is free to use and keeps a small credit link to BizAI.
Use it with a real business idea
Each of our business idea guides loads this kind of calculator with an example budget and price for that business. Other free tools: Small Business Profit CalculatorBreak-Even CalculatorMarkup and Margin CalculatorHourly Rate CalculatorStartup Cost Calculator.