Business Loan CalculatorFree online financial calculator — instant results, no sign-up
Payment and true cost of a business loan with fees.
Estimates only, based on the inputs and assumptions shown. This is not financial, investment, tax, or legal advice. Prices, rates and local rules may change; crypto scenarios do not predict returns. Confirm important decisions with a qualified professional.
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About the Business Loan Calculator
This calculator computes the monthly payment, total interest, and total cost of a standard fixed-rate business loan. It also determines the upfront origination fee deducted from or paid on the principal borrowing amount. Business owners and financial planners use it to evaluate financing terms and forecast debt service obligations.
- Loan amount
- The total principal amount borrowed, expressed in dollars (typically $5,000 to $5,000,000).
- Rate
- The stated annual interest rate on the loan, expressed as a percentage (typically 3% to 35%).
- Term
- The repayment duration in years (typically 1 to 25 years).
- Origination fee
- The one-time lender processing fee assessed as a percentage of the loan amount (typically 0% to 7%).
Formula and method
r = Rate / 1200 n = Term × 12 M = P × [r(1 + r)^n] / [(1 + r)^n − 1] Total Payments = M × n Total Interest = Total Payments − P Upfront Fee = P × (Origination fee / 100)
- PLoan principal amount
- rMonthly interest rate (annual rate divided by 12 and converted from percentage)
- nTotal number of monthly payments (term in years multiplied by 12)
- MFixed monthly loan payment
- Total PaymentsSum of all monthly payments over the term
- Total InterestTotal interest charges paid over the life of the loan
- Upfront FeeTotal dollar cost of the origination fee based on initial principal
The tool converts the annual interest rate into a monthly decimal rate and multiplies the term years by 12 to find the total payment count. It applies standard fixed-rate amortization to calculate the recurring monthly payment, total repayment amount, and lifetime interest. Finally, it calculates the upfront fee directly as a percentage of the total principal.
Worked example
These are the calculator's starting values and the results it actually produces for them.
Inputs
- Loan amount100000 $
- Rate9 %
- Term5
- Origination fee2 %
Results
- Monthly payment$2,075.84
- Total of payments$124,550.13
- Total interest$24,550.13
- Upfront fee$2,000.00
How to use the Business Loan Calculator
- 1Multiply the loan term in years by 12 to find the total number of monthly payments (n).
- 2Divide the annual interest rate by 1,200 to establish the periodic monthly interest rate (r).
- 3Apply the fixed amortization formula to calculate the monthly payment (M) and total interest.
- 4Multiply the original loan principal by the origination fee percentage to find the upfront cash charge.
Reading your result
The monthly payment indicates the regular cash outflow required to keep the facility in good standing. The total interest and upfront fee together represent the net financing cost of borrowing the capital over the full term. Comparing these figures across different lender offers helps identify whether lower interest rates outweigh higher upfront closing fees.
Limitations
This calculator assumes a fixed interest rate and fully amortizing equal monthly payments; it does not model variable rates, balloon payments, interest-only periods, or prepayments. It also treats the origination fee as paid separately upfront rather than financed into the loan balance, and excludes other closing costs such as SBA guarantee fees, legal fees, or appraisal costs.
Common questions
Is the origination fee financed into the monthly payment or paid out of pocket?+
In this calculator, the monthly payment is based solely on the borrowed principal amount, and the origination fee is calculated as a separate upfront cost. In practice, lenders may deduct this fee directly from your disbursed funds or roll it into the financed balance.
How does an origination fee impact the loan's Annual Percentage Rate (APR)?+
An origination fee raises the effective APR above the stated nominal interest rate because it represents an immediate borrowing cost that reduces the net proceeds your business receives.
Does this calculation apply to commercial lines of credit or merchant cash advances?+
No. This tool is designed for fixed-rate term loans. Lines of credit charge interest only on drawn funds, and merchant cash advances use factor rates rather than standard amortization formulas.
Does the calculator save my information?+
Calculations run in your browser. While signed in, inputs and results are automatically recorded in account history; saving a result creates a separate saved record.
Further reading
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Results are estimates for informational purposes and are not financial, medical or legal advice.