🏢 Business Loan Calculator
Calculate the monthly payment, total interest, and repayment schedule for a commercial or small business loan.
Loan Details
Your Result
| Month | Payment | Principal | Interest | Balance |
|---|
Table shows the first 12 payments of the repayment schedule as a preview.
How the Business Loan Calculator Works
This business loan calculator uses the standard fixed-rate amortization formula to compute your monthly payment for a commercial or small business loan, then builds a full repayment schedule showing how much of each payment goes to principal versus interest.
Formula
Number of Payments (n) = Term in Months
Monthly Payment = P × r × (1 + r)ⁿ / [(1 + r)ⁿ − 1]
(If r = 0: Monthly Payment = P / n)
Worked Example
A $100,000 small business loan at 8% annual interest over 5 years (60 months): monthly payment ≈ $2,027.64, total repayment ≈ $121,658, and total interest ≈ $21,658 over the life of the loan.
How to Use This Business Loan Calculator
- Enter the loan amount you're borrowing (commercial or small business loan principal).
- Enter the annual interest rate offered by the lender.
- Choose years or months, then enter the loan term.
- If your lender charges an origination fee, enter it as a percentage to see its dollar cost.
- Your monthly payment, total interest, and a 12-month repayment schedule preview appear instantly.
Frequently Asked Questions
What's the difference between a business loan and a commercial loan?
"Business loan" and "commercial loan" are often used interchangeably to describe financing for a business, though "commercial loan" sometimes specifically refers to larger loans for commercial real estate or equipment. This calculator works for either.
What is a typical interest rate on a small business loan?
Rates vary widely based on the lender, loan type, your business credit, and collateral — anywhere from roughly 6% to 30%+ depending on the loan product (bank term loan, SBA loan, or online/alternative lender).
What is an origination fee?
An origination fee is a one-time charge some lenders deduct from your loan amount (or add to your closing costs) for processing the loan, typically expressed as a percentage of the loan amount.
Does a shorter repayment term save money on a business loan?
Generally yes — a shorter term means less time for interest to accrue, so total interest paid is lower, though the monthly payment will be higher.