🚧 Coming Soon
Business Loan Calculator
Calculate monthly payments and total cost for any business loan. Compare SBA loans, term loans, and lines of credit. We're building this calculator now — check back soon.
Calculate monthly payments and total cost for any business loan. Compare SBA loans, term loans, and lines of credit. We're building this calculator now — check back soon.
This calculator estimates the monthly payment, total interest cost, and full repayment schedule for a business loan. Whether you're evaluating an SBA 7(a) loan, SBA 504 loan, bank term loan, or online lender offer, understanding the true cost of borrowing before you sign is essential for cash flow planning and ROI analysis.
Business loan costs often involve additional fees — origination fees, packaging fees, annual fees, and prepayment penalties — that significantly affect the true cost. This calculator lets you include those costs to see the effective APR alongside the nominal rate for apples-to-apples comparisons.
For a standard amortizing business term loan:
Monthly Payment = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]
Where P is the principal, r is monthly interest rate (annual rate ÷ 12), and n is number of months. For SBA loans, rates are tied to the prime rate plus a spread set by the lender — currently prime + 2.25% to prime + 4.75% depending on loan size and term.
The SBA 7(a) is the most flexible SBA loan — usable for working capital, equipment, real estate, or refinancing, up to $5 million with terms up to 25 years for real estate. The SBA 504 is for major fixed assets and involves two lenders: a bank covering 50% and a Certified Development Company covering 40% at a fixed rate, with 10% down from the borrower.
DSCR = Net Operating Income ÷ Total Annual Debt Service. Most lenders require a DSCR of at least 1.25 — meaning your business earns $1.25 for every $1.00 of debt obligation. A DSCR below 1.0 means the business cannot cover debt payments from operations alone.
Merchant cash advances quote a "factor rate" (e.g., 1.30) instead of an interest rate. A $100,000 advance at 1.30 factor means you repay $130,000 total. This converts to extremely high APRs — often 40–150% — especially when repaid quickly. Always convert factor rates to APR before comparing to traditional loans.
Traditional banks typically require a personal credit score of 680+ and 2+ years in business. SBA loans generally require 650+. Online lenders may approve at 600+ but at higher rates. Startups under 2 years old face more limited options, often needing strong personal credit (720+) or collateral.
Traditional SBA 7(a) loans take 30–90 days from application to funding. SBA Express loans (up to $500,000) have a 36-hour SBA response commitment but still take 30–45 days for full funding. SBA Preferred Lenders can sometimes fund in 2–3 weeks.
Yes — interest paid on business loans used for legitimate business purposes is generally deductible as a business expense on Schedule C or the entity's return. The deduction applies to interest only, not principal repayment.
It's very difficult. Options for startups with no revenue include SBA Microloan programs (up to $50,000), CDFI lenders, personal loans used for business purposes, or business credit cards. Business plan loans based on projections alone are rare outside of venture or angel financing contexts.
Use the ROI Calculator to determine whether the business investment will generate sufficient return to justify the borrowing cost. The DTI Calculator helps assess whether your personal debt load affects qualification. The Self-Employment Tax Calculator is useful if you're a sole proprietor managing business income.