Business Loan Calculator

Business borrowing covers a wide range of products, from term loans to SBA loans and equipment financing to lines of credit, each with its own rate range and structure. This calculator handles the most common case, which is a fixed-rate term loan repaid on an amortization schedule.

Before you commit, check how this payment affects your debt-to-income ratio.

Enter your amount, term, and rate to see the monthly payment, the full schedule, and the total interest, so you can weigh the financing against the return you expect the borrowed capital to generate.

How does this calculator work?

Enter the loan amount, term, and APR. Business term loans commonly run 1–10 years; equipment loans often match the asset's useful life, while SBA loans can stretch much longer.

The calculator computes a fixed payment and an amortization schedule. You can also solve for any field. For example, you can set a target payment to see what amount or term fits your cash flow.

Beyond the loan itself, the optional Purchase Price and Annual Appreciation Rate fields track what the business, or the asset you're financing, is worth. The Business Value tab charts that value against the loan balance, and the Business Ending Value card shows its projected worth when the loan is paid off: context for the value being built alongside the borrowing cost, separate from the payment math.

Add an extra monthly payment to shorten the loan, but check your note first: some business loans carry prepayment penalties that change the math.

Worked example

Suppose a business borrows $80,000 at 11% APR over 5 years to fund expansion.

Loan amount

$80,000

Term / APR

5 yrs / 11%

Monthly payment

$1,739.47

Total interest

$24,364

Total repaid

$104,364

How the numbers work

The $1,739.47 payment is the amortization result for $80,000 at 11%, or 0.9167% per month over 60 months.

The first month's interest is $80,000 × 0.9167% = $733.33, so $1,006.14 of the payment goes to principal. As the balance shrinks, more of each fixed payment reduces principal.

Over five years the payments total $104,364, or the $80,000 borrowed plus $24,364 in interest.

The financing costs $24,364 in interest over five years. The real question is whether the $80,000 generates more than that in additional profit. If the expansion returns well above the loan's cost, the borrowing pays for itself.

Because business loan interest is generally a deductible business expense, the after-tax cost of borrowing is often lower than the headline rate suggests. Confirm specifics with your accountant.

Types of business financing

A term loan delivers a lump sum repaid on a fixed schedule, which is what this calculator models. An SBA 7(a) loan is a government-guaranteed term loan with longer terms and competitive rates but more paperwork. Equipment financing is secured by the equipment itself and usually matches the asset's life. A line of credit is revolving rather than amortizing: you draw and repay as needed and pay interest only on the balance, so it's better modeled as you use it than as a fixed schedule.

Most business loans require a personal guarantee from the owner and often collateral, which is why rates, which are typically about 7% to 20% APR, depend heavily on the business's history, revenue, and the owner's credit.

Is business loan interest tax deductible?

Interest on a loan used for ordinary business purposes is generally deductible as a business expense, which lowers the effective cost of borrowing. The loan proceeds themselves aren't income, and the principal portion of payments isn't deductible. Only the interest is deductible. Rules and limits apply, so confirm your situation with a tax professional or accountant.