Calculate monthly payments, total interest, and the full cost of financing for your business. Compare loan terms to find the right option for your cash flow.
Total amount you need to borrow
Monthly Payment
$2,027.64
Total Interest
$21,658.37
Total Cost of Loan
$121,658.37
Interest-to-Loan Ratio
21.7%
Over 5 years (60 payments), you will pay $21,658 in interest on top of the $100,000 principal.
Principal
$100,000
82.2% of total cost
Interest
$21,658
17.8% of total cost
Very Affordable
$2,027.64 / month
$2,028
Shorter Term
3 years
$3,133.64/mo
Current
5 years at 8%
$2,027.64/mo
Longer Term
8 years
$1,413.67/mo
Lower Rate (-1%)
7.0% rate
$1,980.12/mo
Business loans use amortization to spread repayment across fixed monthly payments. Each payment covers both principal and interest, with early payments going mostly toward interest and later payments mostly toward principal. This calculator uses the standard amortization formula to show your exact monthly payment, total interest cost, and overall cost of the loan so you can plan your cash flow with confidence.
Business loan rates vary widely. SBA loans typically range from 5-10%, traditional bank loans from 6-13%, online lenders from 7-30%, and merchant cash advances can have effective rates of 20-80%. Your rate depends on credit score, time in business, revenue, and the type of loan.
SBA loans are partially guaranteed by the Small Business Administration, which reduces lender risk and typically results in lower rates and longer terms. However, they require more paperwork and take longer to process. Traditional bank loans may fund faster but often have stricter qualification requirements.
Most lenders want your total debt service (including the new loan) to consume no more than 1.25x your available cash flow (the debt service coverage ratio). As a rough guide, you can typically borrow 10-30% of your annual revenue, though SBA loans can go higher for established businesses.
Shorter terms mean higher monthly payments but less total interest paid. Longer terms lower your monthly payments but cost more overall. Match the loan term to the useful life of what you're financing — equipment loans for 3-7 years, real estate for 10-25 years, and working capital for 1-3 years.
Loan Payoff Calculator
Find out how long it will take to pay off your loan and how much you can save by making extra payments. See your debt-free date and total interest savings.
Debt Service Coverage Ratio Calculator
Calculate your DSCR to see if your business generates enough income to cover its debt payments. Essential for loan applications and financial health monitoring.