Business Loan Calculator
Estimate your monthly business loan payment and total borrowing cost. Enter the loan amount, interest rate, term, and fees to compare financing options for your business.
Business loans provide capital for starting, operating, or expanding a business. The most common types include SBA loans (backed by the Small Business Administration), traditional bank term loans, online lender loans, and lines of credit.
Monthly payments are calculated using the standard amortization formula: M = P[r(1+r)^n] / [(1+r)^n - 1]. The effective cost of borrowing should include origination fees, SBA guarantee fees, and closing costs, which can add 1-5% to the total cost.
SBA loans typically offer the best rates and longest terms (up to 25 years for real estate), but have stringent application requirements. Online lenders offer faster funding and easier approval but at higher rates. The key is to compare the total cost of borrowing, not just the monthly payment, as shorter-term loans at slightly higher rates may cost less overall than longer-term loans at lower rates.