Free Business Loan Calculator — Estimate Loan Payments & Total Costs
Calculate your monthly payments and total interest for any business loan. Know what you'll pay before you borrow.
Pro tip: Business loans typically range from 5% to 30% APR depending on your credit score, revenue, and time in business. This calculator uses standard amortization—actual payments may vary slightly based on lender fees.
How much do you want to borrow?
Check with your lender or search typical rates for your credit profile
Select or enter a custom loan term
Enter loan details to see your results
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Common Scenarios
| Example | Result |
|---|---|
| $50,000 loan, 8% APR, 5 years | $1,013.37/mo |
| $100,000 loan, 12% APR, 7 years | $1,659.19/mo |
| $25,000 loan, 6% APR, 3 years | $756.59/mo |
How to Use a Business Loan Calculator Before You Borrow
A business loan calculator is one of the most important tools to use before signing on the dotted line. Most borrowers fixate on the monthly payment—but the real cost of a loan is the total interest you pay over its lifetime, and that number can be shockingly different from what you expect.
Consider this: a $50,000 loan at 8% APR over 5 years costs $293 per month and $17,580 in total interest. The same $50,000 at 12% APR over 5 years costs $1,112 per month and $16,723 in total interest. The higher rate doesn't just hurt your monthly cash flow—it adds nearly $7,000 to the total cost of the loan. Always compare total interest, not just monthly payments.
Loan term matters enormously. A 10-year loan feels safer because the payments are lower, but you'll pay significantly more in interest over time compared to a 5-year loan. If your business can afford the higher payments of a shorter term, it's almost always the better financial move.
The interest rate you actually get depends on your credit profile, time in business, annual revenue, and the type of lender you use. Traditional bank loans often offer the lowest rates (5-10% for qualified borrowers) but have strict requirements and slow approval. Online lenders offer faster approval but rates can run 15-30% APR for newer businesses or lower credit scores.
Before you calculate, know what you're comparing. Input the same loan amount, rate, and term into this calculator to compare offers side by side. The difference between lenders can be tens of thousands of dollars on a $100,000 loan over 5 years. This calculator pays for itself the first time it saves you from an expensive loan.
Frequently Asked Questions
- How is the monthly payment calculated?
- We use the standard amortization formula: M = P[r(1+r)^n] / [(1+r)^n - 1], where P is the principal, r is the monthly interest rate, and n is the total number of payments. This gives you the fixed payment required to fully pay off the loan over the specified term.
- What's the difference between interest rate and APR?
- The interest rate is the cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate PLUS fees and other costs, giving you the true annual cost of the loan. For most business loans, APR is the number to compare, not the base interest rate.
- Is this business loan calculator free?
- Yes! This calculator is 100% free to use with no signup required. Use it as many times as you need to compare different loan offers and scenarios.