Business Loan Calculator: Estimate Payments and Total Cost
Estimate the payment on a fixed-rate business term loan, then see scheduled interest, total repayment and how fees withheld at closing change the cash your business receives. Use the result to test your cash flow and compare written offers.
The calculator models a conventional fully amortizing loan. A business line of credit, variable-rate loan, balloon, lease or merchant cash advance needs a different calculation. Your provider’s agreement and amortization schedule control the actual obligation.
Estimates are educational, not an application, rate quote or approval. See My Financing Options.
What the estimate assumes
How the estimate works
Enter the principal, nominal fixed annual interest rate, term and payment frequency. The estimate assumes equal periodic payments, no rate changes, no balloon and no skipped payments. Withheld fees reduce cash received but do not reduce principal owed. Provider schedules can differ.
Estimate a fixed-rate business loan
Calculations run in your browser. Nothing you type is sent to ShopRates.
Cash delivered at closing
Every figure is an estimate. The tool does not produce an APR, estimate an approval amount or rank providers. Confirm the actual schedule, fees and payoff terms in a provider’s written agreement.
Worked example
Scroll the table sideways to see every column.
| Input or result | Illustrative value |
|---|---|
| Principal | Illustrative value$250,000 |
| Nominal fixed annual rate | Illustrative value10.00% |
| Term / frequency | Illustrative value60 monthly payments |
| Origination fee withheld | Illustrative value$5,000 |
| Old debt paid from proceeds | Illustrative value$0 |
| Estimated regular monthly payment | Illustrative value$5,311.76 |
| Estimated total scheduled payments | Illustrative value$318,705.68 |
| Estimated total interest | Illustrative value$68,705.68 |
| Net proceeds / fresh cash | Illustrative value$245,000 |
| Payments less net proceeds | Illustrative value$73,705.68 |
This is a mathematical example, not a market rate or offer. The final payment can differ by pennies because each period’s interest and payment are rounded to cents — here the last payment is $5,311.84.
The formula, and the zero-rate case
For monthly payments, the periodic rate r = nominal annual rate ÷ 12 and the period count n = months. For weekly payments, r = nominal annual rate ÷ 52 and n = round(months × 52 ÷ 12).
Regular unrounded payment = P × r ÷ [1 - (1 + r)^(-n)]
At a zero rate, payment = P ÷ n.
The displayed schedule is built in cents, and the final payment is adjusted to clear the remaining balance exactly.
A weekly term is an estimate. Months do not always map evenly to weeks, and lender calendars and holidays can vary. Treat a weekly result as an approximation of the provider’s own schedule.
Fees and prior payoffs are different things
A $100,000 face amount with a $3,000 fee withheld supplies $97,000 before any old debt payoff, while payments remain based on $100,000. If a separate $20,000 existing balance is paid at closing, fresh cash deposited is $77,000.
The old payoff retires another obligation; it is not automatically a fee for the new loan. Compare the eliminated old payments and any old prepayment charges separately, and never fold a payoff into the cost of new financing.
What this calculator cannot model
- Floating or reset rates, interest-only periods, balloon payments and draw-based lines of credit.
- Merchant cash advance factor rates, revenue-based remittances, reconciliation or variable completion date.
- Lease residual value, end buyout, return costs or tax treatment.
- Provider-specific SBA fees, closing costs or current program rules.
- Skipped or deferred payments, irregular daily ACH, holiday calendars, compounding methods or default charges.
- Early payoff discounts, prepayment penalties, extra principal or refinances unless a separate validated module is built.
Use a different page when the structure differs
Scroll the table sideways to see every column.
| Question | Route |
|---|---|
| Which product should I compare? | RouteCompare Business Funding |
| How do term loan agreements work? | RouteBusiness Term Loans |
| Would revolving access fit better? | RouteBusiness Lines of Credit |
| Is my purchase equipment-specific? | RouteEquipment Financing |
| Does an SBA program apply? | RouteSBA Loan Options |
| What does an MCA factor rate mean? | RouteMerchant Cash Advances |
| Am I financing property? | RouteCommercial Real Estate Loans |
A rate is not an annualized cost
The input is a nominal fixed annual interest rate. An APR or another annualized cost measure may include fees and requires a specific method with dated cash flows. This tool deliberately does not output an APR from a nominal rate.
Do not use this calculator to put an APR on a merchant cash advance. An MCA can involve a purchased amount, factor pricing and variable remittances rather than a loan with a rate. See Merchant Cash Advances for how that pricing actually works.
It can illustrate a conventional fixed-rate amortizing schedule using assumptions you enter for an SBA-backed loan, but it does not calculate provider-specific SBA program fees, eligibility or loan terms. Those live on SBA Loan Options.
Can the business afford the result
Put the periodic payment into a 13-week forecast along with payroll, suppliers, taxes and all existing debt. Test a 20% receipts decline and a 45-day customer delay.
A payment that fits average monthly revenue may still strain a low-cash week. The calculator is a starting point; the business needs a complete budget and written provider terms.
Compare written offers consistently
Scroll the table sideways to see every column.
| Offer term | Offer A | Offer B |
|---|---|---|
| Face amount and cash deposited | Offer ARecord both | Offer BRecord both |
| Nominal rate and pricing method | Offer ARecord | Offer BRecord |
| Frequency and payment count | Offer ARecord | Offer BRecord |
| Total interest and fees | Offer ARecord separately | Offer BRecord separately |
| Total scheduled payments | Offer ARecord | Offer BRecord |
| Collateral and personal guaranty | Offer ARecord | Offer BRecord |
| Early payoff and default | Offer ARequest written terms | Offer BRequest written terms |
Record the same seven lines for every offer. A calculator estimate is a starting point; the written agreement controls the actual obligation.
Frequently Asked Questions
How do I calculate a business loan payment?
For a fixed-rate, fully amortizing loan, use principal, periodic interest rate and number of payments. This calculator estimates equal monthly or weekly payments and adjusts the last payment for cent rounding.
Is the interest rate shown here an APR?
No. The input is a nominal fixed annual interest rate. APR or another annualized cost measure may include fees and require a specific method and dated cash flows.
Does the origination fee reduce my loan balance?
An upfront fee withheld from proceeds generally reduces cash delivered, while payments may still be calculated on the full face amount. Confirm how the actual provider structures fees.
Why is my final payment a few cents different?
Regular payment and interest amounts are rounded to cents. The last payment is adjusted to extinguish the remaining balance.
Can I calculate weekly business loan payments?
Yes, as an estimate. The tool uses 52 weeks per year and rounds the number of weeks implied by the term in months. Actual lender schedules can differ.
Does this calculator work for an SBA loan?
It can illustrate a conventional fixed-rate amortizing schedule using assumptions you enter. It does not calculate provider-specific SBA program fees, eligibility or loan terms.
Can I use it for an MCA?
No. An MCA can involve a purchased amount, factor pricing and variable remittances. Use the Merchant Cash Advances guide and compare the dated cash flows in the actual offer.
Does a lower payment mean a cheaper loan?
Not necessarily. A longer term can lower the periodic payment while increasing total interest. Compare total repayment, fees and the use of proceeds.
Does it include a balloon or variable rate?
No. The tool assumes a constant rate and complete amortization over the entered number of periods.
Will using this tool affect my credit?
No. The calculator performs local arithmetic and does not submit an application or request a credit report.
Are my numbers saved?
The calculation runs in your browser and entered amounts are not sent to ShopRates analytics.
Does ShopRates offer the rate I entered?
No. The number is an assumption you enter, not an advertised rate or offer. Independent providers determine eligibility and terms.
Take the Estimate Into a Full Funding Comparison
Use the result alongside real written offers. Compare the cash delivered, all fees, collateral, repayment schedule and what happens if the project takes longer than expected. ShopRates can organize next steps and may connect you with independent providers.
This is educational arithmetic, not an application, offer or credit decision. Call (888) 396-7284.