DailyCalcNest

Business Loan Payment Calculator

Enter the loan amount, annual rate and term to see the monthly payment, the total borrowing cost and how the balance falls each year.

Use the rate your lender quotes you.

An origination or similar fee, if any.

Your results

Monthly payment
$1,037.92
Total interest
$12,275.07
Upfront fee
$1,000.00
Total cost of borrowing
$13,275.07
Total of all payments
$62,275.07
Balance by year
YearPrincipalInterestEnd balance
1$8,291.50$4,163.51$41,708.50
2$9,069.30$3,385.71$32,639.20
3$9,920.06$2,534.95$22,719.13
4$10,850.63$1,604.38$11,868.50
5$11,868.50$586.51$0.00

The calculator opens with example values; type over them. Results update as you type and stay in your browser. This estimates a fixed-rate, fully amortizing loan with level monthly payments. Your lender's quote and contract are the final word.

Looking beyond the monthly payment

A longer term makes the monthly payment smaller, which can help cash flow, but raises the total interest you pay. It is worth comparing at least two terms. If you can comfortably afford the shorter one, you may save a substantial amount. If it would leave your cash too tight, the extra interest might be a fair price for breathing room.

Upfront fees are also part of the cost. If a fee is deducted from the loan, you receive less cash than the amount you repay. When comparing offers, look at the total cost of borrowing, or the APR if the lender provides it, rather than just the interest rate.

The formulas

Monthly payment

Payment = P × r ÷ (1 − (1 + r) ^ −n)

P is the loan amount, r is the annual rate ÷ 12 as a decimal, and n is the number of months.

Total interest

Total interest = Payment × n − P

Worked example

A business borrows $50,000 at 9% a year for 60 months with a 2% upfront fee.

  1. Monthly rate: 0.09 ÷ 12 = 0.0075.
  2. Monthly payment: $1,037.92, rounded to the cent.
  3. Total of all 60 payments, before that rounding: $62,275.07, of which $12,275.07 is interest.
  4. Upfront fee: 2% = $1,000.00, for a total borrowing cost of $13,275.07.

Questions to ask a lender

  • Is the rate fixed or variable? This calculator assumes it is fixed.
  • Are payments monthly, or more frequent? Some business financing collects payments daily or weekly, and the true cost can be very different.
  • Is there a prepayment penalty?
  • Is a personal guarantee or collateral required?
  • What are the full fees, and when are they paid?

Frequently asked questions

Is the interest rate the same as APR?

Not always. APR is designed to reflect certain fees along with interest, so it is often higher than the rate. Use it to compare offers where available.

Does this work for merchant cash advances or factor rates?

No. Those products usually use a fixed payback amount and often collect daily or weekly. Their cost can be much higher than a loan with a similar-looking number, so ask for the APR.

Can I see what happens if I repay faster?

Try a shorter term to see the payment and interest at that length. Check first that your agreement has no prepayment penalty.

How do I decide if a loan is worthwhile?

Compare the total cost with what the money will earn. The ROI calculator can help assess that, and the cash runway calculator shows how the payment affects your cash.