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Business Loan Calculator

Calculate your monthly payment, total interest, and see a full amortization schedule. Know exactly what you'll pay before you borrow.

Loan Details

Loan Amount

Interest Rate (APR)

Loan Term

years

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Monthly Payment

$2,076

for 60 months

$24,560

Total Interest

$124,560

Total Payment

Jan 2031

Payoff Date

19.7%

Interest % of Total

Payment Breakdown

Total Payments $124,560

Principal: $100,000

Interest: $24,560

Amortization Schedule

#	Payment	Principal	Interest	Balance

Understanding Business Loan Payments

When you take out a business loan, your monthly payment consists of two parts: principal (the amount you borrowed) and interest (the cost of borrowing). Understanding how these work together helps you make smarter financing decisions.

How Amortization Works

With an amortizing loan, each payment is the same amount, but the split between principal and interest changes over time. In the early months, most of your payment goes toward interest. As you pay down the balance, more goes toward principal. This is why the amortization schedule above shows increasing principal payments over time.

Types of Business Loans

SBA Loans

6% – 13% APR

Government-backed loans with the best rates and longest terms. Requires strong credit and documentation.

Bank Term Loans

7% – 15% APR

Traditional financing from banks. Competitive rates for established businesses with good credit.

Online Lenders

10% – 30% APR

Faster approval and funding. More flexible requirements but higher rates. Good for newer businesses.

Tips to Get the Best Rate

Improve your credit score: 700+ opens the door to the best rates. Pay down existing debt and fix any errors on your credit report.
Show strong financials: Lenders want to see consistent revenue, positive cash flow, and at least 2 years in business.
Offer collateral: Secured loans typically have lower rates. Equipment, real estate, or inventory can serve as collateral.
Shop multiple lenders: Rates vary significantly. Get quotes from banks, credit unions, SBA lenders, and online lenders.
Consider the total cost: A lower rate with fees might cost more than a slightly higher rate with no fees. Compare APR, not just interest rate.

Frequently Asked Questions

Business loan payments are calculated using the loan amount, interest rate, and term length. The formula accounts for principal and interest paid over time. Use our calculator above to instantly see your monthly payment, total interest, and full amortization schedule for any loan scenario.

Interest rates for small business loans typically range from 6% to 30% depending on the loan type and your qualifications. SBA loans offer the best rates (6-13%), traditional bank loans run 7-15%, and online lenders charge 10-30%. Your credit score, time in business, revenue, and collateral all affect your rate.

Small business loan amounts range from $5,000 to $5 million depending on the lender and loan type. SBA loans go up to $5 million, traditional bank loans typically max at $1-2 million, and online lenders offer $5,000 to $500,000. Lenders typically look for 1-2 years in business and annual revenue of $100,000+.

An amortization schedule shows how each loan payment is split between principal and interest over the life of the loan. Early payments go mostly toward interest, while later payments pay down more principal. This schedule helps you understand exactly how much you'll pay and when your loan will be paid off.

Shorter terms mean higher monthly payments but less total interest paid. Longer terms lower your monthly payment but cost more overall. Choose based on your cash flow: if monthly payments are tight, go longer; if you can afford higher payments and want to save on interest, go shorter.

Common requirements include: 1-2+ years in business, $100,000+ annual revenue, 650+ credit score, and positive cash flow. SBA loans have stricter requirements while online lenders are more flexible. You'll typically need bank statements, tax returns, financial statements, and a business plan.

Restaurant startup costs typically range from $50,000 for a food truck to $750,000+ for a full-service restaurant. Key expenses include build-out (30-40% of budget), equipment (15-25%), and working capital for the first 3-6 months. Use our Restaurant Startup Cost Calculator to get a detailed estimate based on your restaurant type, location, and specific needs — then come back here to calculate your loan payment.

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