mCalculator logo
Loan Calculators

Business Loan Calculator

Estimate monthly payments, total interest, and the true cost of a business loan including origination fees and other upfront charges.

Uses standard amortization plus a bisection solve for the fee-inclusive effective APR.

$
%
yr
%
$
Monthly payment
$2,149
Over 5 yr · effective APR 12.06% after fees.
Total of payments
$128,963
Total interest
$28,963
Origination fee
$3,000
Upfront fees total
$3,500
Net proceeds at funding
$96,500
All-in total cost
$132,463
Explain this result

Turn the numbers above into plain-language takeaways. Educational only — not financial advice.

Save & Compare Scenarios

Save the current inputs under a name, then reload or compare them side by side. Scenarios stay on this device only.

Overview

How the Business Loan Calculator Works

Business loans rarely cost what the headline rate suggests. Origination fees, packaging fees, and other upfront charges reduce the cash you actually receive while you still repay the full principal — pushing the true APR several points above the quoted rate. This calculator amortizes the payment, totals the interest, and solves for the fee-inclusive effective APR so you can compare offers apples-to-apples.

Formula

The Math Behind the Calculator

Monthly payment M = P × r / (1 − (1 + r)^−n). Net proceeds = Principal − Origination − Other fees. Effective APR is solved numerically as the rate that equates Net proceeds with the present value of all monthly payments over n months.

Example

A Worked Example

A $100,000 SBA-style term loan at 10.5% over 5 years has a $2,149/mo payment and ~$28,900 in interest. Add a 3% origination fee ($3,000) and $500 packaging: net proceeds drop to $96,500, and the effective APR climbs to about 11.9% — meaningfully higher than the headline 10.5%.

How to use

How to Use the Business Loan Calculator

  1. 1Enter the requested principal and the rate quoted by the lender.
  2. 2Add the loan term in years; SBA 7(a) is typically 5–10 years for working capital.
  3. 3Include origination as a % of principal — most lenders charge 1–6%.
  4. 4Add any other flat fees (packaging, doc prep, guarantor fees) so the effective APR is honest.
Interpretation

What the Results Mean

  • Monthly payment is what's debited from your business account every month.
  • Effective APR is the rate you're actually paying once fees reduce the cash you received.
  • Total cost = total of monthly payments + upfront fees — the all-in dollar amount of borrowing.
Keep exploring

Smart Next Steps

What to explore next
Avoid

Common Mistakes to Avoid

  • Comparing offers by quoted rate alone and ignoring origination — a 'lower rate' loan with 5% origination is often more expensive.
  • Forgetting that some lenders deduct fees from proceeds while others bill them separately; either way they raise the true APR.
  • Choosing the longest term to shrink the monthly payment without checking how much extra interest it costs.
Keep going

Related Calculators

Loan Comparison Calculator

Compare two loan offers side by side — monthly payment, total interest, total cost including fees, and effective APR.

APR Calculator

Calculate the true APR of a loan when origination fees, points, and other financed costs are included — the number that actually compares two offers.

Personal Loan Calculator

Estimate the monthly payment, total interest, and total cost of a personal loan at any rate and term.

Simple Interest Loan Calculator

Calculate simple interest, total repayment, and the equivalent monthly payment using the I = P × r × t formula common with auto and short-term loans.

Learn

Related Guides

8 min read

Balloon Payment Loans Explained: How the Lump Sum Is Calculated

How a balloon loan differs from a fully amortizing one, how the final balloon amount is calculated, and the three ways borrowers handle it.

Read guide
FAQ

Frequently Asked Questions

What APR is normal for a small business loan?+

Bank term loans for established businesses run 7–13%; SBA 7(a) is typically prime + 2.75–4.75%; online lenders can run 15–40%+ APR. Always compare the effective APR, not the headline rate.

Does this work for SBA loans?+

Yes for the basic amortization. SBA 7(a) and 504 add a guarantee fee structure that varies by loan size — include it in 'other fees' for a fee-inclusive estimate.

Why is my effective APR higher than the quoted rate?+

Because you repay interest on the full principal even though origination and packaging fees reduce the cash you actually received.

Financial Disclaimer

This calculator is for educational and estimation purposes only. It does not provide financial, mortgage, tax, investment, or legal advice. Actual rates, payments, taxes, fees, insurance costs, eligibility, and loan terms vary by lender, location, credit profile, and market conditions. Always compare official offers and consult a qualified professional before making financial decisions.

Last updated June 2026 · Prepared by the mCalculator Editorial Team