FinanceFormula-based · Runs in your browser

Business Loan Calculator

Calculate monthly payments and total costs for a business term loan, including origination fees.

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Calculation steps

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  1. 1

    Formula selected

    The calculator uses the following formula or method.

    Payment uses the installment-loan formula; APR is the monthly discount rate that equates net proceeds after fees with all scheduled payments, multiplied by 12.

  2. 2

    Values entered

    Your values are placed into the calculation.

    Enter values to see what is used in this step.

  3. 3

    Result calculated

    The formula or method produces the following result values.

    Results will appear after a successful calculation.

  4. 4

    Answer formatted

    Displayed values are rounded and formatted using each output’s configured precision.

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How it works

Calculate monthly payments and total costs for a business term loan, including origination fees.

Input query strings and outputs

Use an input name in this page’s URL as ?name=value, and join additional inputs with &. Portable shared links may instead use the compact ?ac= state parameter.

Input query strings

4
  • ?amount= Loan Amount

    Number · Optional · Default: 100,000

  • ?rate= Interest Rate

    Number · Optional · Default: 8.5

  • ?term= Term (Years)

    Number · Optional · Default: 5

  • ?fees= Origination Fees

    Number · Optional · Default: 1,500

Outputs

1
  • result Result

    Text · Primary output

result contains the calculator’s complete rendered result area, including its visible result cards, tables, charts, and messages.

Plan your company’s growth financing

Description

The Business Loan Calculator is designed to handle the specific terms often found in commercial lending. It calculates your monthly installments and provides a total cost breakdown that includes both interest and upfront “Origination Fees,” giving you a clear picture of the total capital expense for your project or expansion.

Inputs

  • Loan Amount: The total principal amount you want to borrow ($).
  • Interest Rate: The annual interest rate for the loan (%).
  • Term (Years): The length of time you have to repay the loan.
  • Origination Fees: Any upfront fees charged by the lender to process the loan ($).

Outputs

  • Monthly Payment: The regular installment you will pay each month.
  • Total Interest: The total interest cost over the entire life of the loan.
  • Total Cost of Loan: The final sum of all principal, interest, and origination fees.
  • Effective Cost (APR): An estimated annual percentage rate that accounts for both interest and fees.

Chart

  • Cost Breakdown Donut Chart: Visualizes the proportion of “Principal,” “Interest,” and “Fees” in the final total loan cost.

“Good to Know”

  • Origination fees are typically deducted from the loan proceeds or added to the balance; this calculator includes them in the “Total Cost” analysis.
  • Interest rates for business loans can vary widely depending on the business’s credit history, revenue, and collateral.
  • Short-term business loans may have higher rates but lower total interest costs due to the accelerated schedule.

Examples

Example 1: Expansion Loan

  • Input:
    • Amount: $100,000
    • Rate: 8.5%
    • Term: 5 Years
    • Fees: $1,500
  • Output:
    • Monthly Payment: ~$2,051
    • Total Cost: ~$124,580

Example 2: Small Equipment Financing

  • Input:
    • Amount: $20,000
    • Rate: 10%
    • Term: 2 Years
    • Fees: $200
  • Output:
    • Monthly Payment: ~$923
    • Total Interest: ~$2,150

Example 3: Interest-Free Promo

  • Input:
    • Rate: 0%
    • Fees: $500
  • Output:
    • Shows that the cost of the loan is purely the $500 origination fee.
Sources
  • No external reference is listed for this calculator. Its formula and variable definitions are shown above.
Limitations
  • Estimates use the rates, timing, and assumptions entered. Fees, taxes, lender rules, and future changes are included only where explicitly shown.