Free calculator

Business loan payment calculator

Enter the loan amount, annual interest rate and term to get the monthly payment, total interest and total repaid on a standard amortizing business loan.

Loan

Loan amount

Interest rate (APR)

Term

months

Origination fee

Deducted from the proceeds

Result

Monthly payment: $3,226.72
Total of payments: $116,161.87
Total interest: $16,161.87
Origination fee: $0.00
Cash received: $100,000.00

Standard amortizing loan with fixed monthly payments. Real offers can add fees, prepayment terms or a different payment frequency.

Year by year

Year	Principal paid	Interest paid	Balance
1	$30,074	$8,646	$69,926
2	$33,223	$5,497	$36,702
3	$36,702	$2,018	$0

How it works

r       = annual rate ÷ 12
payment = amount × r ÷ (1 − (1 + r)^−months)
total   = payment × months
interest = total − amount

At a 0% rate the payment is simply amount ÷ months.

Each payment covers that month's interest on the remaining balance, and the rest reduces the balance. Early payments are mostly interest; later ones are mostly principal.

Worked example

A $100,000 loan at 10% a year over 36 months has a payment of $3,226.72, total interest of about $16,162 and a total repaid of about $116,162.

Loans and merchant cash advances are priced differently

A term loan charges interest on a declining balance, so paying early usually saves money. A merchant cash advance is priced with a factor rate: the payback is fixed up front. To compare the two, use the MCA factor rate calculator, which estimates an APR from the payment schedule.

SBA loans, equipment loans and lines of credit add their own fees, guarantees and draw rules. This calculator covers the payment on the amount you borrow; add fees separately.

Place loans, lines and MCAs in one pipeline

Lenders, programs and offers tagged by product, from term loans to lines of credit, SBA and equipment.

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Questions

How is a business loan payment calculated?

With the standard amortization formula: amount × monthly rate ÷ (1 − (1 + monthly rate) to the power of minus the number of months).

Does this include fees?

No. Origination, packaging and guarantee fees vary by lender and product. Add them to see the full cost.

Is a business loan cheaper than a merchant cash advance?

Often, for businesses that qualify, because interest runs on a declining balance and terms are longer. Merchant cash advances fund faster and with looser requirements but usually cost more. Compare total cost and payment, not just the rate.