Business Loan Calculator

Calculate monthly payments and total cost for business loans

$0
Monthly Payment

About the Business Loan Calculator

This business loan calculator helps entrepreneurs and business owners estimate loan payments and total costs. It accounts for origination fees and provides the effective APR, giving you a true picture of financing costs for your business. Business loans come in many forms including term loans, SBA loans, equipment financing, and lines of credit. This calculator helps you evaluate term loan options by showing the true cost including fees, helping you make informed decisions about financing your business growth.

How to Use This Calculator

  1. Enter the loan amount, interest rate, and loan term in years.
  2. Input the origination fee percentage charged by the lender.
  3. Click Calculate to see your monthly payment, effective APR, and yearly payment schedule.

The Formula

The calculator amortizes the loan amount monthly and computes the effective APR based on the net loan proceeds after fees.

Effective APR = ((Total Payment / Net Proceeds)^(1/Term) - 1) × 100

Frequently Asked Questions

What types of business loans are available?

Common business loans include term loans, SBA loans, equipment financing, business lines of credit, and invoice financing. Each has different rates and terms.

How does a business loan differ from a personal loan?

Business loans typically offer higher amounts, longer terms, and use business credit and revenue for qualification. Interest rates may be lower than unsecured personal loans.

What types of business loans are available?

Common options include term loans (fixed amount repaid over time), SBA loans (government-backed), equipment financing, business lines of credit, invoice financing, and merchant cash advances.

How does a business loan differ from personal financing?

Business loans typically use business credit and revenue for qualification, may offer larger amounts, and interest is often tax-deductible. Personal loans for business use may have higher rates and lower limits.

What credit score do I need for a business loan?

Traditional bank loans typically require a personal credit score of 680+ and 2+ years in business. Online lenders may accept lower scores of 550+ but charge higher rates.

How do origination fees affect business loan APR?

Origination fees of 0.5-5% are common on business loans. The effective APR can be significantly higher than the nominal rate, especially on shorter-term loans. This calculator includes fees in the APR calculation.

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