Business Loan Calculator
Work out your business loan payment, total interest and total repayment, with a full amortization summary. Choose your term, payment frequency and currency.
Written by the CalcBundle Research & Editorial Team · Reviewed by the Quality Review Team · Transparent formulas · results are estimates, not advice. · Updated
Monthly payment
Enter a loan amount greater than zero.
What is a business loan calculator?
A business loan calculator shows what a loan will really cost. Enter the amount, interest rate and term, and it computes your regular payment, the total interest you will pay, and the total you will repay — plus a year-by-year amortization summary.
How is the payment calculated?
- Periodic rate r = annual rate ÷ payments per year
- Number of payments n = term in years × payments per year
- Payment = P × r ÷ (1 − (1 + r)^−n) (or P ÷ n at 0% interest)
- Total interest = (Payment × n) − Principal
The calculator handles monthly, quarterly and annual payment frequencies and terms in years or months, and correctly handles a 0% interest rate.
What affects your payment
A larger loan or higher rate raises the payment. A longer term lowers each payment but means more payments and more total interest — so the cheapest monthly figure is not always the cheapest loan. The amortization summary shows how your balance falls over time and how the interest/principal split shifts.
Example
A $100,000 loan at 6% over five years, paid monthly, works out to about $1,933 a month, roughly $16,000 of total interest, and $116,000 repaid in total. Extending the term would cut the monthly payment but increase the interest.
Currency
Choose from USD, GBP, CAD, AUD, INR or EUR. Currency is used for formatting only — the calculator does not convert between currencies.
Related calculators
Want just the payment, or to work backwards from an affordable payment? Use the business loan payment calculator. Check the return on borrowed capital with the business ROI calculator, and make sure the repayments fit with the cash flow calculator.
Frequently asked questions
How is a business loan payment calculated?
For an amortizing loan the payment is P × r ÷ (1 − (1 + r)^−n), where P is the principal, r is the periodic interest rate (annual rate ÷ payments per year) and n is the number of payments. At 0% interest the payment is simply the principal divided by the number of payments.
How much interest will I pay?
Total interest is the sum of every payment minus the amount borrowed. Longer terms and higher rates increase total interest, even when they lower the individual payment. The calculator shows total interest and interest as a percentage of the loan.
What affects business loan payments?
Three things: the loan amount, the interest rate, and the term. A longer term reduces each payment but increases total interest; a higher rate increases both. Payment frequency (monthly, quarterly, annual) changes the size and number of payments.
What is amortization?
Amortization is how each payment splits between interest and principal. Early on, more goes to interest; over time, more goes to principal until the balance reaches zero. The yearly summary shows this progression.
What is the difference between APR and the interest rate?
The interest rate is the cost of borrowing the principal alone, while the APR (annual percentage rate) folds in many of the fees — origination, processing and similar charges — to express the true annual cost as a single percentage. Because two loans with the same interest rate can carry very different fees, comparing on APR is far more revealing than comparing on the headline rate. When you weigh competing loan offers, the APR is usually the fairer basis for deciding which is genuinely cheaper.
Should I choose a shorter or longer loan term?
It is a trade-off between monthly affordability and total cost. A longer term lowers each payment, easing cash flow, but you pay interest for more years, so the loan costs more overall. A shorter term does the opposite — higher payments, less total interest, and freedom from the debt sooner. A business protecting its cash runway may rightly prefer the lower payment, while one with strong, stable cash flow may prefer to minimise total interest. Running a few terms side by side is the quickest way to see the trade-off for your numbers.
Can I pay off a business loan early to save interest?
Usually yes, and because interest is charged on the outstanding balance, paying down principal early can save a meaningful amount over the life of the loan. The catch is that some lenders charge prepayment penalties designed to recover part of the interest they would have earned, so the saving is not always as large as it first appears. Before making extra payments, check your loan agreement for any prepayment terms and weigh the interest saved against keeping that cash available for the business.
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Disclaimer. This calculator provides estimates for informational purposes only. Results are based on the information you enter and the assumptions used by the calculator. Actual financial, tax, business valuation, lending, marketplace or investment outcomes may differ. Consider consulting a qualified professional for decisions involving significant amounts of money. Loan calculations are estimates and actual rates, fees and terms may vary by lender.