Business Loan Payment Calculator
Calculate your monthly payments, total interest, and see if a loan fits your budget—before you apply
How the Business Loan Calculator Works
Our calculator uses the standard amortization formula to determine your monthly payment, just like banks do. Here's what it calculates:
Monthly Payment
The fixed amount you'll pay each month, including both principal and interest. This helps you budget accurately.
Total Interest
The cost of borrowing over the life of the loan. Lower rates and shorter terms reduce this amount.
Affordability Analysis
If you enter your monthly revenue, we'll show what percentage of revenue goes to loan payments—a key metric lenders use.
Total Cost
The complete amount you'll repay (principal + interest). This helps you understand the true cost of financing.
Typical Business Loan Interest Rates (2026)
| Loan Type | Typical Rate Range | Typical Terms |
|---|---|---|
| SBA 7(a) Loan | 6.5% - 10.5% | 10 - 25 years |
| Bank Term Loan | 7% - 12% | 1 - 10 years |
| Equipment Financing | 6% - 15% | 3 - 7 years |
| Online Lender Term Loan | 8% - 25% | 1 - 5 years |
| Business Line of Credit | 7% - 25% | 6 months - 5 years |
* Rates vary based on credit score, time in business, revenue, and lender type. These are averages as of 2026.
What's a Good Payment-to-Revenue Ratio?
Lenders evaluate affordability by looking at what percentage of your monthly revenue will go toward loan payments. Here's how they typically view it:
Very affordable. Plenty of cash flow cushion. Most lenders will be comfortable with this ratio.
Reasonable and manageable. This is where most approved loans fall. Lenders are typically comfortable here.
Getting tight. You may qualify but lenders will scrutinize other factors closely. Leave room for unexpected expenses.
May strain cash flow. Consider a longer term, smaller amount, or wait to grow revenue before borrowing.
Frequently Asked Questions
How accurate is this calculator?
Very accurate for fixed-rate term loans. We use the same amortization formula that banks use. However, some lenders may add origination fees or have different payment structures (like interest-only periods), which aren't reflected here.
Should I choose a shorter or longer term?
It depends on your priorities. Shorter terms mean higher monthly payments but less total interest paid. Longer terms mean lower monthly payments but more interest over time. Choose based on your cash flow needs and how quickly you want to be debt-free.
What interest rate should I expect?
It varies widely based on your credit score, time in business, revenue, and lender type. SBA loans typically offer the lowest rates (6.5%-10.5%), while online lenders may charge 8%-25%. See the rate table above for typical ranges.
Does this include fees and other costs?
No, this calculator only shows principal and interest. Many lenders charge origination fees (1%-5% of loan amount), closing costs, or prepayment penalties. Ask about the APR (Annual Percentage Rate) which includes these costs.
How do I know if I'll actually qualify?
This calculator only shows if the payment is affordable. Qualification depends on credit score, time in business, revenue, debt-to-income ratio, and other factors. Use our qualification checker to see your approval odds.