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.
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.
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.
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%.
Compare two loan offers side by side — monthly payment, total interest, total cost including fees, and effective APR.
Calculate the true APR of a loan when origination fees, points, and other financed costs are included — the number that actually compares two offers.
Estimate the monthly payment, total interest, and total cost of a personal loan at any rate and term.
Calculate simple interest, total repayment, and the equivalent monthly payment using the I = P × r × t formula common with auto and short-term loans.
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.
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.
Because you repay interest on the full principal even though origination and packaging fees reduce the cash you actually received.
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