Business Loan Payment Calculator
Get your estimated monthly business loan payment, total interest and total repayment — or flip to affordability mode to find the loan amount a given monthly payment can support.
Written by the CalcBundle Research & Editorial Team · Reviewed by the Quality Review Team · Transparent formulas · results are estimates, not advice. · Updated
Estimated monthly payment
Enter a loan amount greater than zero.
What is the business loan payment calculator?
This is a focused version of our business loan calculator. Enter a loan amount, rate and term to see your estimated monthly payment instantly — or use the built-in reverse calculator to answer the more useful question: “how much can I afford to borrow?”
Two ways to use it
- Monthly payment: enter the loan amount to get the payment, total interest and total repayment.
- What can I afford? enter your maximum comfortable monthly payment and the calculator returns the largest loan amount that payment supports at your rate and term.
How it works
- Payment = P × r ÷ (1 − (1 + r)^−n)
- Maximum loan = Payment × (1 − (1 + r)^−n) ÷ r
Here r is the monthly rate (annual rate ÷ 12) and n is the number of monthly payments. Both directions use the same underlying loan engine, so the numbers are always consistent — the affordability answer, run forward, reproduces your payment.
How the term changes the picture
The loan term is the lever borrowers most often underestimate. Stretching a loan over more years lowers each monthly payment, which eases cash flow — but because you are paying interest for longer, the total cost climbs, sometimes substantially. A shorter term does the reverse: a higher monthly payment, but less interest paid overall and freedom from the debt sooner. There is no universally right answer; a young business protecting its runway may rightly prefer the lower payment, while an established one may prefer to minimise total interest. Running a few terms side by side is the quickest way to see the trade-off for your own numbers.
Worked example
A $100,000 loan at 6% over five years works out to about $1,933 a month, with roughly $16,000 of total interest. Working backwards, a maximum comfortable payment of $1,933 a month at the same rate and term supports a loan of about $100,000 — the two views are exact mirror images, because both run on the same amortization engine. Extend the term to seven years and the payment falls to around $1,460, but the total interest paid rises, illustrating precisely why a lower payment is not automatically a cheaper loan.
Related calculators
For the full amortization schedule and other payment frequencies, use the business loan calculator. Check whether the repayments fit your budget with the cash flow calculator and weigh the return on the borrowing with the business ROI calculator.
Frequently asked questions
How is my monthly loan payment calculated?
The monthly payment on an amortizing loan is P × r ÷ (1 − (1 + r)^−n), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12) and n is the number of monthly payments.
How much can I afford to borrow?
Switch to the affordability mode, enter the maximum monthly payment you're comfortable with, plus the rate and term, and the calculator works backwards to the largest loan that payment supports.
Does a longer term reduce my payment?
Yes — spreading the loan over more payments lowers each one, but you pay interest for longer, so the total cost of the loan rises.
What interest rate should I use?
Use the annual percentage rate your lender quotes. If you're comparing offers, run each rate to see how it changes the payment and total interest.
Should I compare loans on the monthly payment or the total interest?
Look at both, because they answer different questions. The monthly payment tells you whether the loan fits your cash flow month to month, while the total interest tells you what the borrowing truly costs over its life. A longer term lowers the payment but usually raises total interest, so the cheapest-feeling loan can be the most expensive overall. The right choice balances an affordable payment against a total cost you are willing to pay.
Are fees included in the payment estimate?
This calculator estimates the payment from the loan amount, interest rate and term alone, so it does not include origination fees, closing costs or other charges some lenders add. Those can meaningfully raise the real cost of borrowing, which is why the APR — which folds many fees into a single rate — is a better basis for comparison than the headline interest rate. Ask each lender for the full fee schedule before deciding.
What is the difference between this and a full amortization schedule?
This tool gives you the headline figures — payment, total interest and total repayment — for a quick decision or comparison. A full amortization schedule goes further, showing how each individual payment splits between interest and principal over the life of the loan, so you can see how slowly the balance falls at first and how equity builds later. For that month-by-month breakdown, use the full business loan calculator.
Related calculators
Sources & methodology
- Formula
- Monthly Payment = P × [r(1+r)^n] / [(1+r)^n − 1] where P = principal, r = monthly rate, n = number of payments
- Reviewed
- September 2026
Primary sources
- Consumer Financial Protection Bureau (CFPB): Loan BasicsCFPB guidance on how loan payments, interest and amortization are calculated.
- SBA: Understanding Business Loan TermsU.S. Small Business Administration explanation of business loan payment structures.
Calculation methodology is documented on our methodology page. Reviewed by the CalcBundle Quality Review Team.
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.