Business Loan Calculator

Monthly payment, total interest, and a year-by-year amortization schedule

Updated 2026-09-28

Loan amount

Interest rate (APR)

Term

years

Upfront fee

Monthly payment: $1,037.92
Total interest: $12,275.07
Upfront fee: $0.00
Total cost of borrowing: $12,275.07
Total repaid: $62,275.07

Fixed-rate, fully amortizing loan with monthly payments. Your lender's disclosure is the authoritative figure.

Your numbers stay on this device. The page link keeps your inputs, so a bookmark or shared link reopens these results.

Amortization by year
Year	Principal paid	Interest paid	Balance left
Year 1	$8,291.50	$4,163.51	$41,708.50
Year 2	$9,069.30	$3,385.71	$32,639.20
Year 3	$9,920.06	$2,534.95	$22,719.13
Year 4	$10,850.63	$1,604.38	$11,868.50
Year 5	$11,868.50	$586.51	$0.00

Before signing a loan offer, you want three numbers: what it costs each month, what it costs in total, and how quickly the balance comes down. This calculator gives all three for a standard fixed-rate, fully amortizing loan, and adds any upfront fee so you see the true cost of borrowing.

How the monthly payment is calculated

A fixed-rate term loan uses the standard amortization formula: payment = P × r ÷ (1 − (1 + r) ^ −n), where P is the amount borrowed, r is the annual rate divided by 12, and n is the number of monthly payments.

A $50,000 loan at 9% for five years gives r = 0.0075 and n = 60, so the payment is $1,037.92 a month. Over 60 payments you repay $62,275, of which $12,275 is interest.

Example monthly payments on fixed-rate term loans
Amount	Rate	Term	Monthly payment	Total interest
$25,000	8%	3 years	$783.41	$3,202.73
$50,000	9%	5 years	$1,037.92	$12,275.07
$100,000	10%	10 years	$1,321.51	$58,580.88
$250,000	11%	10 years	$3,443.75	$163,250.03

Fees change the real cost

Many business loans carry an origination or packaging fee, often taken out of the money you receive. Borrow $50,000 with a 3% fee and you receive $48,500 but repay interest on the full $50,000. Enter the fee to see the total cost of the loan including it.

Merchant cash advances and some short-term products quote a factor rate (such as 1.3) rather than an interest rate. Those do not amortize the same way, and this calculator does not model them — ask the lender for the total repayment amount and compare it to the amount you receive.

Reading the amortization schedule

Early payments carry the most interest, because interest is charged on a large balance. As the balance falls, more of each payment goes to principal. On the five-year example above, about a third of the first year's payments is interest; by the final year it is under 5%.

That shape is why paying extra early saves the most interest, and why refinancing late in a loan saves very little.

Can the business afford the payment?

Lenders look at whether cash flow covers the payment comfortably. Check these before you apply:

Put the payment into your cash flow forecast as a fixed monthly outflow and look at the lowest month, not the average
Work out how many extra sales it takes to cover the payment using your gross margin — the break-even calculator does this
Keep a cash buffer of at least one or two payments so one slow month does not become a missed payment
Compare the total interest with the profit the borrowed money is expected to produce (the ROI calculator helps)

Fixed versus variable rates

This calculator assumes the rate stays fixed for the whole term. Many lines of credit and some SBA loans are variable, tied to the prime rate. For those, run the numbers at today's rate and again at two or three points higher to see what a rate rise would do to the payment.

Keep the numbers in a spreadsheet

Ready-made Excel and Google Sheets templates that pick up where this calculator stops. One-off purchase, instant download.

12-Month Cash Flow Forecast & Business Budget Spreadsheet
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Simple Profit & Loss (P&L) Statement Spreadsheet
Log transactions; get a monthly and yearly P&L with margins.
$9See template

Frequently asked questions

How is a business loan payment calculated?

With the amortization formula: payment = P × r ÷ (1 − (1 + r)^−n), using the monthly rate r and the number of monthly payments n. The calculator does this for you.

Does this include SBA loan fees?

Enter any upfront guarantee or origination fee as a percentage in the fee box and it is added to the total cost. Rates and fee rules for SBA programs change, so use the figures on your actual offer.

Why is so much of my early payment interest?

Interest is charged on the outstanding balance, which is highest at the start. As you pay the balance down, the interest share of each payment falls.

Can I use this for an equipment loan?

Yes, as long as it is a fixed-rate loan repaid in equal monthly payments. Leases and balloon loans follow different structures.

Is this a loan offer or financial advice?

No. It is a planning calculator. Your lender's disclosure is the authoritative figure for any specific loan.

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