Business Loan Calculator
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.
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 the business loan calculator when comparing options, setting a realistic target, or checking whether a proposed financial decision fits your broader plan.
Limitations
- The result is an estimate based on the amounts, rates, timing, and assumptions entered.
- Actual product terms, taxes, fees, eligibility rules, and market conditions can change the outcome.
- Use official disclosures or a qualified professional before making a binding financial decision.
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
- Using an advertised rate without checking whether it applies to the full balance or term.
- Leaving out fees, taxes, timing differences, or irregular cash flows.
- Treating a planning estimate as a guaranteed quote or final professional calculation.
Tips
- Run a conservative scenario as well as an optimistic one.
- Change one assumption at a time so you can see what drives the result.
- Save or export the calculation and update it when rates, costs, or goals change.
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.