Business loan calculator: monthly payment, total interest, and total cost from loan amount, APR, and term. Free, editable terms, no signup, runs locally.
Updates automatically as you type.
Calculated in your browser; your inputs are not sent to us. Privacy
Results will appear here.
✓Basic automated checks passed. Formula accuracy is not established by these checks. See check scope and results
Calculation details
Every figure above is calculated locally in your browser from the assumptions shown. No inputs are sent anywhere. See the methodology section below for how this tool works.
Use this resultShare the current inputs, or ask ChatGPT to explain the calculation in context.
Ask an AI to explain this result
Share this result
Review the generated output before relying on it.
This tool runs in your browser. Your calculator inputs and results are never transmitted to us or to ad/affiliate partners. Ads and sponsored links may set third-party cookies to serve and measure them, but they never receive your calculation values. If you explicitly save a scenario, its permitted fields stay in local browser storage until you clear them. See our Privacy Policy.
Use this result
Share the current inputs or ask ChatGPT to explain the calculation in context.
No unrelated authority link is added merely to make this page look sourced. Tool-specific external sources are shown only when they directly support the method, rate, or rule.
Assumptions to Verify
Rates, fees, timing, and rules can change.
Use the result as a planning estimate and verify current terms.
Privacy: The calculation runs in this browser. Shared links contain the page address only, not your inputs or results.
$100k at 10%, 5 years
What this means for your numbers: Interest is 27% of the worked example's total repayment. A 1-point rate cut saves $2,700 over the term: rate shopping has a real dollar value.
Illustrative breakdown using the worked example above. The calculator computes your own numbers with the same formula.
Where the payment number comes from
The calculator uses the standard amortizing payment formula: pmt = P x r / (1 - (1 + r)^-n), where r is the monthly rate (APR / 12) and n is the term in months. Take a $100,000 loan at 9% APR over 60 months. The monthly rate is 0.09 / 12 = 0.0075, and (1.0075)^-60 works out to about 0.6387, so the payment is 100000 x 0.0075 / (1 - 0.6387) = 750 / 0.3613 = $2,075.84 per month.
Watch how the split shifts. In month 1 the interest charge is 100000 x 0.0075 = $750.00, so only $1,325.84 of that first payment touches principal, 36.1% of it. By the end of year 1 the balance is $83,417 and the year cost $8,327 in interest; by year 5 interest is down to $1,173 as principal takes over. Total paid is $124,550.13, of which $24,550.13 is interest. Early extra principal payments attack the expensive early months, which is why a lump sum in year 1 saves far more interest than the same payment in year 4.
What the quoted APR leaves out
The formula assumes every dollar of the principal reaches your bank account and the APR captures all cost. Real offers break both assumptions. A 2% SBA 7(a) guarantee fee on that $100,000 loan is $2,000; if it is financed, you pay interest on it too, pushing total cost closer to $126,700 over the 60 months. Origination fees, packaging fees, and closing costs of 1% to 3% have the same effect: the true rate, or APR-in-the-legal-sense, runs 0.3 to 0.8 percentage points above the note rate on a 5-year term.
Two structural mismatches also matter. First, term length: this tool treats the input as months, but many online business lenders quote a 'factor rate' like 1.25 on a 6-month advance, which is roughly 55% APR equivalent, not 25%. Second, payment frequency: weekly or daily ACH drafts (common with merchant cash advances) compound more often and front-load cash demands the monthly model here does not show. If a lender quotes a factor rate or a daily debit, convert to a monthly APR before comparing it against this result, or the comparison is meaningless.
