Business Loan Calculator
Calculate business loan payments with origination fees — actual cash received, total cost, and effective APR.
Everyday Uses
Expansion planning
Price equipment, inventory, or expansion borrowing before approaching lenders — know your numbers first.
Fee transparency
Origination fees hide the true cost — see the effective APR and the cash you actually receive.
Comparing lender offers
Bank vs SBA vs online lender: compare on effective APR and total cost, not headline rates.
Cash flow fit
Check the monthly payment against your free cash flow — the ratio lenders will check anyway.
Frequently Asked Questions
How do origination fees change what a business loan costs?
Fees (commonly 1–5%) are deducted from the disbursement, but you repay the full loan amount. Borrow $100,000 with a 2% fee and you receive $98,000 while repaying interest on $100,000 — so the effective APR is higher than the stated rate. This calculator solves the true APR so offers with different fee structures compare honestly.
What do lenders look at for business loans?
Cash flow first: most want your debt-service coverage ratio (net operating income ÷ loan payments) above roughly 1.25. Also: time in business (2+ years preferred), credit score, collateral, and industry risk. Calculate your payment here, then check it against your monthly free cash flow before applying.
What terms are typical for business loans?
Bank term loans: 3–10 years at competitive rates. SBA loans: up to 10 years working capital, 25 years real estate, with capped rates but slower approval. Online lenders: faster but costlier, often 6 months–5 years. Equipment loans usually match the equipment life. Longer terms lower payments but raise lifetime interest — model both here.
Should I take a fixed or variable rate?
Fixed rates make cash flow planning simple and protect you if rates rise; variable rates start lower but add uncertainty. For thin-margin businesses, predictability usually wins. If you model a variable loan here, stress-test the payment at 2–3 percentage points above today's rate.