About this Business Loan Calculator
Expanding your business often requires capital. Whether you are looking at a term loan from a bank, an SBA loan, or online financing, knowing your monthly obligation is key to cash flow management. This calculator amortizes the loan to show your true cost.
Who this calculator is for
- Business owners comparing loan offers for equipment, working capital, or expansion.
- Operators who need to understand the monthly cash-flow impact before borrowing.
- Founders reviewing bank, SBA, or online lender terms side by side.
When to use it
- Estimate monthly debt service before accepting financing.
- Compare total borrowing cost across different rates, terms, and upfront fees.
- Pressure-test whether projected cash flow can comfortably support the payment.
How to use this calculator
- Enter the Loan Amount requested.
- Enter the Annual Interest Rate.
- Input the Term in years.
- Add any upfront Origination Fees.
Key assumptions
- This calculator assumes a fixed-rate loan with equal monthly payments over the full term.
- Fees are added to the overall borrowing cost, but they do not change the amortized monthly payment in this model.
- The tool does not model balloons, variable rates, daily repayment schedules, or prepayment penalties.
Accuracy and testing
Review formula sources, default test cases, assumptions, unit handling, rounding rules, and changelog for this calculator.
How this calculator works
Inputs explained
Loan Amount
The principal amount you want to borrow.
Term
How long you have to pay it back. Commercial terms are often shorter than mortgages (e.g., 5-10 years for equipment, up to 25 for real estate).
Origination Fees
Upfront fees deducted from the loan proceeds or added to the cost. SBA loans often have guarantee fees.
Understanding your results
Example scenarios
Equipment Loan
$50,000 for 5 years at 8%. Payment ~$1,014/mo. Total Interest ~$10,800.
SBA 7(a) Loan
$200,000 for 10 years at 10%. Payment ~$2,643/mo. Total Interest ~$117,000.
Key Features
- Commercial Loan Logic
- Total Cost Analysis
- Fee Integration
Things to Keep in Mind
Assumes a monthly repayment schedule. Does not support Daily/Weekly payments often found in Merchant Cash Advances (MCAs).
Tips & Best Practices
- SBA loans usually offer longer terms and lower rates but require more paperwork than online lenders.
- Watch out for daily or weekly repayment schedules from alternative lenders (MCAs), which can drain cash flow faster than monthly loans.
- If the interest rate is variable (like Prime + 2%), use a slightly higher rate to stress-test your budget.
Glossary of Terms
- SBA
- Small Business Administration. A US government agency that guarantees loans to small businesses.
- Amortization
- Paying off debt in regular installments over a period of time.
- Principal
- The original sum of money borrowed.