Business Loan Calculator

Calculate the monthly payment, total interest, and true cost of a small-business or commercial loan — including an optional origination fee. Free, instant, fully validated.

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Business Loan Calculator

Payment, interest & total cost

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Monthly Payment
Total of Payments
Total Interest
Origination Fee
Total Cost (w/ fee)
Principal vs Interest

Understanding Business Loan Costs

A business loan's monthly payment is calculated with the standard amortization formula on the loan amount, interest rate, and term. But the rate alone doesn't tell the whole story — many business loans charge an origination fee (often 1%–6%) deducted from your proceeds or added to your cost, which raises the effective cost of borrowing. This calculator shows your monthly payment, the total interest over the life of the loan, the dollar amount of the origination fee, and the all-in total cost.

For example, a $100,000 loan at 9% over 5 years has a monthly payment of about $2,076, totaling roughly $124,560 — about $24,560 in interest. Add a 3% origination fee ($3,000) and the true cost rises to about $127,560. When comparing lenders, always look past the headline rate to the fees, term, and total cost, because a lower rate with high fees can cost more than a slightly higher rate with none.

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Rate vs APR

The interest rate sets your payment; fees push the effective APR higher. A 9% loan with a 3% fee behaves like a higher-rate loan once fees are counted.

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Term Trade-off

Longer terms lower the monthly payment but increase total interest. Shorter terms cost less overall but strain monthly cash flow.

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Origination Fees

Commonly 1%–6% of the loan, charged upfront. Factor them in — they meaningfully change the true cost of the loan.

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Cash Flow First

Make sure the monthly payment fits your business's cash flow with margin to spare before borrowing — revenue can be seasonal.

Business Loan FAQ

With the amortization formula: M = P × r(1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the loan amount, r is the monthly rate (annual ÷ 12), and n is the number of months. This calculator runs that formula and also totals the interest and adds any origination fee for the true cost.
Rates vary widely by lender and borrower. Bank and SBA loans often run 7%–13%, online lenders can be higher, and equipment or secured loans may be lower. Your rate depends on credit, time in business, revenue, and collateral. Enter your quoted rate to see exact costs.
A one-time fee a lender charges to process the loan, typically 1%–6% of the amount. It's either deducted from your proceeds or added to your costs, raising the effective cost of borrowing. This calculator adds the fee to the total cost so you can compare offers fairly.
A longer term lowers the monthly payment but increases total interest paid; a shorter term does the opposite. Choose the shortest term whose monthly payment your cash flow can comfortably handle — that minimizes interest while protecting your liquidity.

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✔ Reviewed by the True Value Calc editorial team🗓 Last updated June 2026📚 Sources: Freddie Mac PMMS, Consumer Financial Protection Bureau