Business Loan Calculator
Results are estimates based on the values you enter. Recheck your inputs and assumptions before using the output for decisions.
Estimate payment, total interest, and total repayment for a standard amortized loan.
Business Loan Calculator
Free online business loan calculator to estimate regular loan payments, total interest, and total repayment for a standard amortized business loan. This calculator is useful for business owners, startup founders, finance teams, accountants, and loan applicants who want a quick idea of how much a business loan may cost over time. It can help when comparing lender offers, checking affordability, planning monthly cash flow, or deciding whether a proposed borrowing amount fits the business budget.
The calculator works with loan amount, annual interest rate, loan term in years, and payment frequency. Once those values are entered, it estimates the regular payment, the total interest paid over the full term, and the total amount repaid. This is useful because the interest rate alone does not show the full cost of a loan. Payment frequency and loan term both affect the repayment schedule, and this calculator brings those inputs together in one place for easier planning.
The formula of business loan
Periodic interest rate = Annual interest rate / Payments per year
Total number of payments = Loan term in years x Payments per year
Regular payment = Principal x [r / (1 – (1 + r)-n)]
Total repayment = Regular payment x Total number of payments
Total interest = Total repayment – Loan amount
Here principal means the original loan amount, r means the periodic interest rate, and n means the total number of payments. This formula applies to standard amortized loans where each payment includes both principal and interest.
Solved Example
Example 1: Find the monthly payment, total interest, and total repayment if a business borrows $100,000 at 8% annual interest for 5 years with monthly payments.
Solve: Monthly rate = 8% / 12 = 0.6667% = 0.006667
Total payments = 5 x 12 = 60
Regular payment = 100000 x [0.006667 / (1 – (1.006667)-60)] = about $2,027.64
Total repayment = 2027.64 x 60 = about $121,658.40
Total interest = 121658.40 – 100000 = about $21,658.40
Example 2: Find the result if a business borrows $250,000 at 7.5% for 10 years with monthly payments.
Solve: Monthly rate = 7.5% / 12 = 0.625% = 0.00625
Total payments = 10 x 12 = 120
Regular payment is about $2,967.52
Total repayment is about $356,102.40
Total interest is about $106,102.40
Example 3: Find the result if a business borrows $50,000 at 9% for 3 years with monthly payments.
Solve: Monthly rate = 9% / 12 = 0.75% = 0.0075
Total payments = 3 x 12 = 36
Regular payment is about $1,589.37
Total repayment is about $57,217.32
Total interest is about $7,217.32
Table of business loan calculator
| Loan Amount | Rate | Term | Payment | Total Interest | Total Repayment |
|---|---|---|---|---|---|
| $50,000 | 9% | 3 years | $1,589.37 | $7,217.32 | $57,217.32 |
| $100,000 | 8% | 5 years | $2,027.64 | $21,658.40 | $121,658.40 |
| $250,000 | 7.5% | 10 years | $2,967.52 | $106,102.40 | $356,102.40 |
| $400,000 | 6.75% | 15 years | $3,539.92 | $237,185.60 | $637,185.60 |
How to use this business loan calculator
Enter the business loan amount in the proper input field. After that, enter the annual interest rate, the loan term in years, and the number of payments per year. Then click the calculate button. The calculator will show the regular payment amount, the total interest paid across the loan term, and the total repayment amount. Make sure the rate and term match the lender’s actual loan offer so the estimate stays relevant.
This calculator is useful for comparing loan scenarios before applying for financing. You can test different borrowing amounts, interest rates, and terms to see how payments change. If the regular payment is too high for expected business cash flow, the business may need a smaller loan, a longer term, a lower interest rate, or a different financing structure. If the payment is manageable, the loan may be more practical from an operating perspective.
When using the result, remember that real loan offers may include origination fees, insurance, prepayment rules, or variable rates that are not captured in a simple amortized model. Even so, this calculator gives a strong first estimate of borrowing cost and monthly obligation. It is a useful planning tool for capital purchases, expansion decisions, refinancing reviews, and lender comparisons.