Business Loan Calculator

Estimate business-loan payments, interest and repayment costs. Enter the loan amount, annual interest rate and loan term to estimate your regular payment and overall borrowing cost.

Enter the amount you plan to borrow for your business.

%

Annual interest rate charged on the business loan.

years

The number of years used to repay the business loan.

Optional lender processing fee included in total borrowing cost.

Payments

Enter additional regular-payment equivalents you plan to pay each year.

Optional annual lump-sum payment toward the outstanding principal.

Business loan analysis

The calculator estimates your regular payment, total interest and total repayment. Extra payments can also show potential time and interest savings.

Extra Payment Savings

Run the calculator to see the effect of extra payments.

Business Loan Formula

Monthly Payment = P × [r(1 + r)ⁿ] ÷ [(1 + r)ⁿ − 1]

P = Loan amount
r = Monthly interest rate = Annual rate ÷ 12 ÷ 100
n = Total number of monthly payments = Loan term × 12

Total Repayment = Monthly Payment × n
Total Interest = Total Repayment − Loan Amount

This calculator uses a standard amortizing-loan formula. Actual business-loan terms, fees, repayment schedules and lender requirements may vary.

How to Use the Business Loan Calculator

1

Enter the Loan Amount

Enter the amount your business plans to borrow.

2

Enter the Interest Rate

Enter the annual interest rate offered by the lender.

3

Enter the Loan Term

Enter the repayment period in years.

4

Review Extra Payments

Optionally add extra annual payments or a lump-sum prepayment to estimate potential savings.

Example Business Loan Calculation

1,000,000 loan at 10% for 5 years

  • Loan Amount = 1,000,000
  • Annual Interest Rate = 10%
  • Loan Term = 5 years

Estimated Monthly Payment ≈ 21,247.04

Estimated Total Interest ≈ 274,822.40.

Estimated Total Repayment ≈ 1,274,822.40.

Understanding Your Business Loan Results

Monthly Payment

The estimated regular payment toward principal and interest.

Total Interest

The estimated interest paid over the scheduled loan term.

Total Repayment

The combined principal and interest paid over the loan.

Total Cost

Total repayment plus the processing fee entered in the calculator.

Key Business Loan Terms

Principal

The amount borrowed by the business before interest and fees.

Interest Rate

The annual rate charged on the outstanding loan balance.

Loan Term

The period over which the business loan is scheduled to be repaid.

Processing Fee

A lender charge that can be included in overall borrowing cost.

Prepayment

An additional payment toward the outstanding principal.

Repayment Cost

The total amount paid toward principal, interest and applicable fee.

Frequently Asked Questions

A business loan calculator estimates regular payments, total interest and repayment cost using the loan amount, interest rate and loan term.
Generally, a longer term spreads repayment over more months and can reduce the regular payment, but it may increase total interest.
Yes. You can enter additional annual payments and a separate annual prepayment. The calculator estimates potential time and interest savings.
No. The processing fee is shown separately and added to total cost. It does not change the calculated interest unless the fee is financed as part of the loan amount.
Yes. At 0% interest, the loan amount is divided evenly across the total number of monthly payments.