Estimate your monthly payment, total interest, and total repayment for a business loan.
The Business Loan Calculator estimates the monthly payment and total cost of a term loan used to fund equipment, inventory, expansion, or working capital.
It uses the standard amortizing loan formula, the same math used by banks and lenders, so you can compare offers or plan cash flow before you borrow.
M = P × [ r(1+r)^n ] ÷ [ (1+r)^n − 1 ], where P is the loan amount, r is the monthly interest rate, and n is the number of monthly payments.
A $50,000 loan at 9% annual interest over 5 years results in a monthly payment of about $1,038, with total interest of around $12,280 over the life of the loan.
It uses the standard amortization formula based on loan amount, annual interest rate, and repayment term to compute a fixed periodic payment.
Only if you include them in the loan amount or account for them separately — origination and other upfront fees can raise your effective borrowing cost beyond the stated interest rate.
A longer term lowers the monthly payment but increases total interest paid over the life of the loan; a shorter term does the opposite.