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.
Payment, interest & total cost
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.
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.
Longer terms lower the monthly payment but increase total interest. Shorter terms cost less overall but strain monthly cash flow.
Commonly 1%–6% of the loan, charged upfront. Factor them in — they meaningfully change the true cost of the loan.
Make sure the monthly payment fits your business's cash flow with margin to spare before borrowing — revenue can be seasonal.
Business lending amortizes like consumer lending but carries structures consumer loans do not. Origination and packaging fees are often several percent of the principal, many facilities carry variable rates tied to prime, and some are interest-only for an initial period before switching to full amortization. Personal guarantees are near-universal for small business borrowing, which means the owner's assets stand behind the debt regardless of the company's limited liability. The measure lenders actually underwrite to is the debt service coverage ratio — whether cash flow covers the payment with margin to spare.
M = P × [ i(1 + i)^n ] ÷ [ (1 + i)^n − 1 ]DSCR = Annual net operating income ÷ Annual debt serviceTrue cost includes origination fees, which raise the effective ratewhere:
Assumptions: Assumes a fixed rate and full amortization. Variable-rate facilities reprice with prime, and prepayment penalties are common on longer-term commercial debt.
SourceSBA 7(a) loan program
Work out the payment, total interest, and the cash flow needed to qualify.
Result$4,722.72 a month — $216,727 of interest, needs $70,841 NOI
Interest is 62% of the original principal over ten years, which is the real cost of double-digit business rates. A 3% origination fee would add $10,500 and raise the effective rate to roughly 11.3%, so fees deserve the same scrutiny as the headline rate.