Business Loan Calculator
Calculate monthly payments for a business loan. Enter amount, rate, and term. Plan cash flow for your business.
All processing happens in your browser; no data is sent to any server. Results update as you type.
Calculate your payment
Formula
Monthly payment = P × [r(1+r)^n] / [(1+r)^n − 1]
Where: P = principal (loan amount), r = monthly interest rate (annual rate ÷ 12), n = total number of monthly payments (years × 12).
How it works
We use the standard amortization formula. Each payment covers interest and principal. Early in the term, most of each payment goes to interest; over time, more goes to principal. The formula ensures equal payments over the life of the loan.
Example: A $20,000 loan at 6.5% for 5 years gives a monthly payment of about $391. Total paid is about $23,460, so total interest is about $3,460. Shorter terms usually mean higher monthly payments but less total interest. Use this to compare offers before borrowing.
When to use it
Use this when comparing loan offers from different lenders, planning your monthly budget, or understanding how a longer or shorter term affects your total cost. Before applying for any loan, run several scenarios to see how rate and term changes affect the payment. Always confirm final numbers with your lender, as they may include fees, insurance, or use slightly different assumptions. This calculator is for principal and interest only.
Frequently asked questions
How accurate is this calculator?
We use standard formulas. Lenders may add fees or use slightly different methods. Use for estimates only.
Does this work for all loan types?
Yes for fixed-rate, fixed-term loans. Variable rates and interest-only periods need different tools.
Is my data sent to a server?
No. All calculations run in your browser. Nothing is uploaded.