Business Loan Calculator: Monthly Payment and True Cost
A business loan calculator estimates fixed installment payments and total borrowing cost after accounting for an origination fee. It helps owners compare term loans on a common basis but does not model every lender’s fee structure or daily-interest method.
Quick answer
Compare more than the advertised payment: a financing fee can reduce the cash your business actually receives even when interest is calculated on the full principal.
At a glance
- What it calculates
- Estimate a business loan payment, total interest, financing fee, and net cash received.
- Who it is for
- US small-business owners comparing term-loan offers including fees.
- Coverage
- United States (federal rules; state and local rules vary)
- Data and assumptions
- A fully amortising fixed-rate loan with the origination fee deducted from proceeds; no covenants, prepayment penalties or variable-rate resets.
- Cost
- Free, no signup, calculations run in your browser
- Last reviewed
- 2026-07-09
Calculator
How to use this calculator
- Enter the requested loan amount.
- Enter the rate, term, and origination fee.
- Review payment, net proceeds, interest, and total cost.
- Compare offers using consistent assumptions.
Explanation
What it is
A business loan calculator estimates fixed installment payments and total borrowing cost after accounting for an origination fee. It helps owners compare term loans on a common basis but does not model every lender’s fee structure or daily-interest method.
How it works
The loan payment uses standard fixed-rate amortization. The calculator separately estimates an origination fee and subtracts it from the face amount to show net proceeds.
When to use it
Use it when you have two or more term-loan quotes and need to compare them on payment, total interest and cash actually received.
Limitations
- Merchant cash advances and revenue-based financing do not amortise and cannot be modelled here.
- Prepayment penalties, variable-rate resets and covenant costs are excluded.
- Approval, pricing and collateral requirements depend on lender underwriting.
Key terms
- Origination fee
- A charge for processing or funding a loan, often stated as a percentage.
- Net proceeds
- Cash received after fees withheld at funding.
- Debt service
- Required principal and interest payments.
- Personal guarantee
- A promise that an individual will repay business debt under stated conditions.
Formula
The loan payment uses standard fixed-rate amortization. The calculator separately estimates an origination fee and subtracts it from the face amount to show net proceeds.
Worked example
A $100,000 five-year loan at 9.5% has a payment near $2,100 per month. A 2% fee would reduce net proceeds by $2,000 and increase the total financing cost.
FAQ
How much is a $100,000 business loan payment?
It depends on rate and term. At 9.5% over five years, a fixed monthly payment is roughly $2,100 before other charges.
What fees should I include?
Possible charges include origination, documentation, packaging, guarantee, closing, maintenance, and prepayment fees.
Can I compare an SBA loan with a conventional loan here?
You can compare simplified payment scenarios, but government-guaranteed programs can have specific fees, variable rates, and eligibility rules.
Does this calculator show APR?
No. It shows interest plus the entered origination fee. A formal APR calculation may require exact fee treatment and payment timing.
How much business debt can I afford?
Compare projected debt service with stable cash flow, seasonality, existing obligations, and a lender’s debt-service coverage requirements.
Common mistakes
- Treating a factor rate or fee-based product as if it were an annual interest rate.
- Ignoring the origination fee when working out how much cash the business receives.
- Borrowing over a longer term than the asset's useful life.
- Leaving out personal guarantee and covenant implications when comparing offers.
Tips
- Compare offers on total cost of capital, not the monthly payment.
- Enter the origination fee separately so you can see the net proceeds.
- Check whether the lender charges interest daily or monthly before trusting an APR comparison.
- Stress-test the payment against your lowest recent month of revenue.
Sources and editorial review
- U.S. Small Business Administration funding programs
- Consumer Financial Protection Bureau small business lending
Educational estimates only; not personalized financial, tax, legal, lending, investment, or insurance advice.