Business Loan Calculator: Interest Rates and Payments

A business loan calculator can help you determine the monthly payments and total interest charges for a small business loan. To use the calculator, enter your:

Amount of the loan.
Duration of the term of the loan.
Annual interest rate.

Find out how much your business loan really costs

You can adjust the loan amount, loan term, or interest rate in the Business Loan Calculator to see how changes in loan features may affect repayment. (That’s one of the reasons it’s important to shop around and compare business loan offers.)

Business Loan Calculator

Calculate estimated payments, then see if you qualify for a business loan

Get personalized small business loan rates to compare

with Fundera by NerdWallet

Understanding Your Business Loan Calculator Results

Monthly payment: This is the fixed amount that you will repay each month. It includes principal, interest and fees.

Total payments: This is the sum of all payments to be made on the loan, which includes the amount you borrowed plus interest and fees.

Total interest paid: The total interest paid represents what the lender charges you for the loan. If you pay off the loan early, you may be able to save on interest.

APR: This number represents the actual annual cost of the loan and makes it easier to compare apples to apples between products. Some lenders don’t provide an APR and instead give a general interest rate that doesn’t include any fees. The APR for business loans depends on your credit score and your business finances, including annual revenue and time spent in business.

We’ll start with a short questionnaire to better understand your unique business needs.

Once we discover your personalized matches, our team will consult with you on the process to follow.

Types of business loans and borrowing options

Terms, rates and qualifications vary by lender, but here are the key features of different types of small business loans.

bank loans

There are many types of small business lenders, but banks are the most well-known. To qualify for a bank loan, small business owners typically need a high personal credit score (starting in the 700s). Banks also tend to look for several years of operating history and strong cash flow from the business. Sometimes banks require guarantees or a personal guarantee.

SBA Loans

The Small Business Administration works with banks and other financial institutions to provide small business loans that have low interest rates and long repayment terms. However, it takes time to get an SBA loan, and borrowers must clear several hurdles to qualify. Small business owners must have good personal credit (690 or higher, although some SBA lenders may have lower score requirements) and the business must demonstrate strong financial performance.

Term loans

Term loans generally range from three to 18 months for a short-term loan to 10 years or more for a long-term loan. Business owners can use the financing, which is usually up to $500,000, for specific items such as equipment or inventory.

Lines of credit

A commercial line of credit provides flexible access to cash. Similar to a credit card, you get a specific amount of credit and make payments only on the money you use.

Equipment financing

Equipment financing is a loan to purchase equipment, and the equipment is collateral. Equipment lenders often finance up to 100% of the value of the equipment. You repay the loan over time with interest.

Invoice factoring and financing

Invoice factoring involves selling unpaid customer invoices to a factoring company who then collects the money from your customers. Invoice financing is an alternative that gives small businesses more control over invoices. One of the benefits of invoice factoring and financing is that the funds arrive in your bank account relatively faster than other types of financing.

Personal loans

A personal business loan may be an option for new businesses that do not qualify for traditional financing. Lenders look at your personal credit score and income rather than your business history.

Business credit cards

A business credit card may also be easier to obtain than a small business loan. However, business credit cards tend to have relatively low credit limits, but you can earn rewards, such as cash back or travel points.

Frequently Asked Questions

Business loans extend up to 10 years or more, but you will likely need to have an established business with strong finances to qualify for such loans.

Online lenders typically charge business loan rates of 6% to 99% APR. You’ll likely find the lowest rates with SBA 7(a) loans, which are set at the daily prime rate plus a spread between lenders.

How difficult it is to get a business loan depends on things like where you get the loan, how strong your credit score and business finances are, and whether you’re ready to apply.