Business loan calculator: monthly payments & amortization
Use this small business loan calculator to see your monthly payment, total interest and cash available after fees. Compare repayment terms, test a rate change and download a monthly amortization schedule. No contact details are required to use the tool.
Estimate your loan payments
Enter your loan terms to estimate the monthly payment. You can also test a rate change or an interest-only period. The starting values are examples.
- Interest paid across all scheduled payments
- Total payments + upfront fees
- Net proceeds after upfront fees
- Balloon principal due at maturity
- Final payment (including balloon)
- Illustrative annualized cost*
*Monthly cash-flow rate × 12, using only the fees you enter. This is not a lender’s APR disclosure. A variable-rate result assumes your selected change occurs and the new rate stays in place.
Amortization schedule
| Month | Annual rate | Payment | Interest | Principal | Balance |
|---|
How this calculator works
Interest for each month equals the opening principal balance × annual nominal rate ÷ 12. Payments occur at month-end. For a level-payment loan, payment = P × r ÷ [1 − (1 + r)−n], where P is principal, r is the monthly rate, and n is the remaining number of payments. At 0%, payment = P ÷ n.
A variable-rate scenario has one reset. At that month, principal-and-interest payments are recalculated over the remaining amortization period. Equal-principal schedules keep the principal portion constant. Interest-only payments cover interest until the chosen period ends, then the balance amortizes over the remaining term. If interest-only lasts for the whole term, the principal is due with the final payment. Partial amortization uses a longer repayment horizon and pays off the remaining balance as a balloon at maturity.
The annualized-cost estimate solves for the monthly rate that discounts the scheduled payments to net proceeds, then multiplies by 12. It is not the effective annual yield. Fees are assumed paid at closing; there are no recurring fees, late payments, prepayments, compounding of unpaid interest, or additional draws. Calculations retain full precision; displayed amounts are rounded to cents. Actual daily accrual, day-count conventions, payment dates, lender rounding, caps, floors, and disclosures can change the result. This tool does not model factor-rate advances or invoice factoring.
How to use the small business loan calculator
- Enter the amount and term. Use the loan’s face amount and the number of monthly payments. For example, three years is 36 months.
- Enter the annual interest rate and upfront fees. Use the note rate, not a factor rate or an APR that already includes fees. Convert a percentage origination fee to dollars before entering it.
- Choose the repayment structure. Most standard amortizing examples use principal and interest. Select equal principal, interest-only or a balloon only when that matches the proposed terms.
- Calculate, then check the final payment. A low initial payment can leave a large amount due later. Read the payment range and balloon result as well as the first monthly payment.
- View or download the schedule. Both schedule buttons calculate your latest entries before displaying or exporting the monthly breakdown.
Use the results to compare quotes and plan for repayments. For financing options and qualification requirements, visit our small business loans page.
Monthly payments on $50,000 to $500,000 business loans
Here is what monthly principal-and-interest payments look like at an illustrative 16% fixed annual rate over three years. The examples include a 1.5% upfront fee deducted from proceeds. The fee changes your net cash and borrowing cost, but not the payment because it is not financed.
| Loan amount | Upfront fee | Net proceeds | Monthly payment |
|---|---|---|---|
| $50,000 | $750 | $49,250 | $1,757.85 |
| $100,000 | $1,500 | $98,500 | $3,515.70 |
| $200,000 | $3,000 | $197,000 | $7,031.41 |
| $250,000 | $3,750 | $246,250 | $8,789.26 |
| $500,000 | $7,500 | $492,500 | $17,578.52 |
For the $100,000 example, interest across all 36 payments is about $26,565.32. Add the $1,500 fee for a borrowing cost of $28,065.32. Those dollar totals are not annual interest rates.
Illustrations only. Payments occur at month-end, the rate stays unchanged and there are no additional charges or early payments. Calculations use full precision; displayed payments are rounded. Actual lender rounding can change the final payment.
Compare business loan repayment terms
Compare the same $100,000 loan at 16% annual interest with a $1,500 upfront fee across three terms. A longer term makes the payment smaller, but leaves principal outstanding longer and increases interest.
| Repayment term | Monthly payment | Interest across the term | Total payments plus fee |
|---|---|---|---|
| 2 years (24 months) | $4,896.31 | $17,511.47 | $119,011.47 |
| 3 years (36 months) | $3,515.70 | $26,565.32 | $128,065.32 |
| 5 years (60 months) | $2,431.81 | $45,908.34 | $147,408.34 |
Fixed-rate, fully amortizing examples with monthly payments and no early repayment. The fee is paid upfront, not financed. Totals use unrounded calculations.
Try the repayment terms from your quotes in the calculator above. Keep the amount and rate the same to see how the term alone changes your payment and total interest.
Compare four ways to repay a business loan
Principal and interest: a standard amortizing loan
At a fixed rate, the regular monthly payment stays level. Interest is calculated on the remaining principal, so more of each later payment goes toward paying down the loan. The balance reaches zero at the end of the scheduled term.
Equal principal: larger payments at the start
The principal portion is the loan amount divided by the number of payments. Interest is added to that amount each month. As the balance falls, the total payment falls too, assuming the rate stays unchanged.
Interest-only payments: principal comes later
During the interest-only period, payments cover interest without reducing principal. When that period ends, the model repays the balance over the remaining months. If you select interest-only for the full term, all principal is due with the final payment.
Partial amortization with a balloon
The monthly payment is calculated over a longer amortization period than the loan’s actual term. The unpaid principal comes due at maturity as a balloon. A future refinance is not guaranteed, so budget for that final obligation. The CFPB’s balloon-payment explanation describes the basic concept; business-loan terms depend on the contract.
How is interest calculated on a business loan?
In this calculator, each month’s interest equals the opening principal balance multiplied by the annual nominal rate, divided by 12. For example, $100,000 at 16% produces $1,333.33 of interest in the first month. The rest of the $3,515.70 payment reduces principal, so the next month’s interest is lower.
The level-payment formula is P × r ÷ [1 − (1 + r)−n]. P is principal, r is the monthly rate expressed as a decimal, and n is the number of payments. At zero interest, the payment is simply principal divided by the number of payments.
This is a monthly reducing-balance model with payments made on time. It does not add unpaid interest to principal. A lender that uses daily accrual, different payment dates or another charging method may produce a different schedule.
Fixed versus variable interest
A fixed-rate scenario keeps the rate unchanged. The variable option lets you choose one reset month and one new annual rate. After that reset, the new rate stays in place for the rest of the model. It is a comparison scenario, not a forecast of future rates or a model of every possible reset.
Interest rate versus annualized borrowing cost
The note rate covers interest. Upfront fees reduce the cash available to you and increase the cost relative to that cash. The tool solves for the monthly cash-flow rate using net proceeds and scheduled payments, then multiplies by 12. Its illustrative annualized cost is not a lender’s APR disclosure or an effective annual yield. It includes only the fees you enter.
Download your business loan amortization schedule
Select View amortization schedule to see each month’s rate, payment, interest, principal and remaining balance. Select Download schedule (CSV) to open those figures in Excel or Google Sheets. Each export reflects your current inputs.
For the $100,000, 16%, 36-month example, the first $3,515.70 payment contains about $1,333.33 of interest and $2,182.37 of principal. The remaining balance is about $97,817.63. The next month starts with that smaller balance. Your amortization table shows the same breakdown for every scheduled payment.
The balance chart helps you see how quickly principal falls. An interest-only period leaves the line flat; a balloon creates a large final reduction. Read the last payment as carefully as the first. Our amortization schedule guide explains how to read the columns.
Business loan calculator questions
Is this also an unsecured business loan calculator?
Yes, if the unsecured loan uses the repayment structure and interest method modeled here. Collateral affects underwriting and contract terms, but it does not change the arithmetic when amount, rate, fees and schedule are identical. The tool does not determine whether a lender requires collateral, a lien or a personal guarantee. The FDIC’s loan overview explains secured and unsecured borrowing.
How much of a business loan can I get?
This calculator estimates payments on an amount you choose. It does not determine eligibility or borrowing capacity. Lenders review cash flow, existing debts, credit and other requirements. Compare the proposed payment with your business’s cash available after expenses and existing obligations, including a slower month.
Can I calculate weekly or biweekly business loan payments?
This tool uses monthly payments. Dividing the monthly result by four or two does not reproduce a weekly or biweekly loan schedule. Ask the lender for its actual payment frequency and full repayment schedule before comparing offers.
Does it calculate extra payments or an early payoff?
No. The schedule assumes payments occur as planned, without extra principal payments or early-payoff charges. Shortening the term creates a different scheduled loan; it is not the same as adding occasional extra payments. Ask your lender for a dated payoff quote.
Can I enter a factor rate such as 1.20?
No. A factor rate is not an annual interest rate. Entering 1.20 in the annual-rate field would model 1.20% annual interest and give the wrong comparison. A fixed factor charge requires its own cash-flow calculation. Invoice factoring is the sale of receivables, not a term loan; see our invoice factoring guide.
Which interest rate should I enter?
Enter the annual nominal interest rate from the lender’s quote. Do not substitute an APR that already includes fees or a factor rate. If you are still gathering quotes, try a few rates to see how much the payment changes. The starting rate is an example. See our business loan rates and fees guide for what to compare.
How do I enter a business loan down payment?
Subtract your down payment from the purchase amount to find the principal you need to borrow. For example, a $125,000 purchase with $25,000 down leaves a $100,000 loan before any financed costs. Do not enter the down payment as an upfront lender fee. The tool does not determine how much equity a lender requires.
Does it include every business loan fee?
No. It includes the upfront dollar fee you enter. It excludes recurring fees, late charges, prepayment penalties and fees added to principal. Read the lender’s itemized quote and the calculation notes before comparing a result with an offer.
Can I use this for an SBA loan or a line of credit?
For SBA program-specific assumptions, use our SBA loan calculator. A revolving credit line with repeated draws needs a different model; see our business line of credit calculator.
Compare the payment with the business plan
A payment you can cover in a strong month may be difficult when sales slow down. Compare the cash the loan provides, its total cost, the payment range and any balloon with the project you are financing. Then review business loan options and requirements or return to our business calculators.
The calculator uses your inputs to build a monthly repayment schedule. Open the calculation notes in the tool for details on fees, rate changes and payment timing. Read our editorial standards.