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Business Loan Calculator

Uncover the true cost of borrowing money. Calculate your monthly commercial loan payments and reveal exactly how much interest you will pay to the bank over the life of your loan.

$

The total amount of money you are borrowing.

%

SBA loans currently average between 8% and 11%.

Equipment loans are typically 5 years. Real estate can be 25 years.

Monthly Payment

$2,051.65/ mo

You must pay this exact amount every month for 60 months.

Total Interest Paid

$23,099

The actual cost of borrowing the money.

Total Amount Paid

$123,099

Principal + Interest over 5 years.

Amortization Summary

Principal (Original Loan)$100,000
Interest Fees (8.5%)+$23,099.19
Final Cost of Debt$123,099.19

How to Use the Business Loan Calculator

Using our business loan calculator is simple and requires no registration:

  1. Enter the total principal Loan Amount you wish to borrow.
  2. Enter the Annual Interest Rate (APR) offered by your bank.
  3. Enter the total Loan Term in years (e.g., 5, 10, or 25 years).
  4. The calculator will instantly generate your mandatory Monthly Payment and the devastating Total Interest Paid over the life of the loan.

Why Use a Business Loan Calculator?

Banks intentionally focus your attention on the 'low' monthly payment because they don't want you looking at the total cost of the debt. This Business Loan Calculator strips away the banking jargon and reveals exactly how much cash you are actually losing to interest fees over the life of the loan.

The Essential Guide to Business Loans in 2026

Taking on commercial debt is one of the most powerful ways to rapidly scale a business, but it is also the fastest way to bankrupt one. Before signing a personal guarantee, founders must use a commercial loan calculator to understand the true, fully amortized cost of the debt they are taking on.

A common mistake is looking only at the interest rate. An 8% interest rate sounds low, but due to compounding interest over a multi-year term, the actual cash you pay back will be significantly higher than the principal borrowed. Our calculator exposes this hidden "Total Interest Paid" metric instantly.

Understanding Amortization

Most business loans (including SBA 7(a) loans) are fully amortized. This means your monthly payment stays exactly the same for the entire life of the loan. However, the makeup of that payment changes drastically over time.

The Front-Loaded Interest Trap

  • Early Years: During the first few years of a loan, the vast majority of your monthly payment goes entirely toward interest, not paying down the principal balance.
  • Late Years: Only at the very end of the loan term does your payment actually start attacking the core debt.
  • The Danger: If you try to sell your business or refinance your loan after 2 years on a 10-year term, you will be shocked to find out you still owe almost the exact same amount you originally borrowed!

The Golden Rule of Business Debt

Debt is a tool. You should only use a small business loan calculator to take on debt if the return on the borrowed capital is significantly higher than the interest rate.

If you borrow $100,000 at 10% interest to buy a new piece of manufacturing equipment, that equipment must generate an internal return of 20%, 30%, or 50% through increased sales or efficiency. If you borrow money just to cover operating losses or payroll, you are in a death spiral. Never use debt to fund a fundamentally unprofitable business model.

Frequently Asked Questions