Business loan payment calculator
A business loan payment calculator turns an amount, APR and term into the payment you will actually make — plus the total interest that payment hides.
Business Term Loan Calculator
Standard amortization: fixed APR, fixed weekly payment. Same formula banks and SBA lenders use.
Methodology
Standard amortization formula: P × r / (1 − (1 + r)−n), where r is the monthly rate (APR / 12) and n is the term in months. APR is the annual percentage rate as defined in the federal Truth in Lending Act (12 CFR § 1026.22). Actual lender quotes may include origination fees that increase APR.
How to read your results
The payment figure is what leaves your account each period. The total interest figure is what the money costs you. Two offers with the same payment can differ by tens of thousands of dollars in total interest if one runs twice as long, which is why the comparison that matters is total cost against the term you actually need the money for.
If your offer quotes a factor rate rather than an APR, convert it first with the factor rate to APR calculator. Not sure how much you would be offered in the first place? The qualification estimator sizes a realistic range from your deposits, time in business and credit score. To see where market pricing sits today, check the live business lending rates page, and review the published qualification minimums plus our funding products before you apply.
For definitions of anything on your offer sheet, the business loan glossary covers APR, factor rate, UCC-1 and DSCR in plain English. The U.S. Small Business Administration publishes current 7(a) and 504 program terms, and the Federal Reserve publishes the bank prime loan rate that most variable business pricing is built on.
Frequently asked questions
How is a business loan payment calculated?
Standard amortization: payment = P × r ÷ (1 − (1 + r)^−n), where P is the principal, r is the periodic interest rate (APR ÷ 12 for monthly) and n is the number of payments. Every payment covers accrued interest first, and the remainder reduces the principal, so the interest portion shrinks over the life of the loan.
Why does my funding offer show a weekly or daily payment?
Short-term working capital and revenue-based products remit weekly or daily rather than monthly because repayment is tied to business cash flow. The calculator shows a weekly equivalent so you can compare it against the remit schedule on your offer sheet.
Does the calculator include fees?
No. It calculates interest only. Origination fees, ACH fees and broker fees change the true cost, so ask any funding provider for the total dollar payback and use the factor rate calculator to convert that number into an APR-equivalent.
What APR should I plug in?
Use the APR quoted on your offer. If you only have a total payback figure and a term, use the factor rate to APR calculator instead — it derives the APR-equivalent from the payback and term.
Is a lower payment always better?
No. Stretching the term lowers the payment but raises total interest. Compare the total cost column, not just the payment, and weigh it against the cash flow your business can comfortably service each week.
Will using this calculator affect my credit?
No. It runs entirely in your browser, nothing is submitted, and no credit inquiry of any kind is performed. A credit check only happens after you start an application and it is disclosed before you sign.
How much of my revenue should go to loan payments?
As a working rule, total debt service under 15 percent of monthly deposits keeps a file comfortable in underwriting. Above roughly 25 percent, most funding providers start declining or reducing the amount offered.
Last reviewed: by the Simply Approved Business Loans editorial team.
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