Business Loan Calculator

Business loan calculator tools let you estimate monthly payments, total cost, and effective APR before committing to financing. CalcForge's free business loan calculator supports three common business lending products: term loans with amortization schedules, equipment loans with balloon payments, and merchant cash advances with factor-rate pricing. Each mode uses the correct math for its loan type so your estimates are accurate.

Compare term loans, equipment financing, and merchant cash advances to find the right funding for your business.

Loan Amount

$50,000.00

$1,000$500,000

Annual Interest Rate (APR)

8.0%

1%30%

Loan Term (Months)60 mo

1 mo360 mo

Estimated Monthly Payment

$1,013.82

for 60 months

Total Interest

$10,829.18

17.8% of total cost

Total Cost

$60,829.18

Principal + interest

Finance Charge

$10,829.18

Cost to borrow

Number of Payments

60 mo

Full term

This is an estimate for informational purposes only. Actual terms vary by lender, credit profile, and business financials. Always review your loan agreement carefully before signing.

Month	Payment	Principal	Interest	Balance
1	$1,013.82	$680.49	$333.33	$49,319.51
2	$1,013.82	$685.02	$328.80	$48,634.49
3	$1,013.82	$689.59	$324.23	$47,944.90
4	$1,013.82	$694.19	$319.63	$47,250.71
5	$1,013.82	$698.82	$315.00	$46,551.90
6	$1,013.82	$703.47	$310.35	$45,848.42
7	$1,013.82	$708.16	$305.66	$45,140.26
8	$1,013.82	$712.88	$300.94	$44,427.37
9	$1,013.82	$717.64	$296.18	$43,709.74
10	$1,013.82	$722.42	$291.40	$42,987.32
11	$1,013.82	$727.24	$286.58	$42,260.08
12	$1,013.82	$732.09	$281.73	$41,527.99
13	$1,013.82	$736.97	$276.85	$40,791.02
14	$1,013.82	$741.88	$271.94	$40,049.14
15	$1,013.82	$746.83	$266.99	$39,302.32
16	$1,013.82	$751.80	$262.02	$38,550.51
17	$1,013.82	$756.82	$257.00	$37,793.70
18	$1,013.82	$761.86	$251.96	$37,031.84
19	$1,013.82	$766.94	$246.88	$36,264.89
20	$1,013.82	$772.05	$241.77	$35,492.84
21	$1,013.82	$777.20	$236.62	$34,715.64
22	$1,013.82	$782.38	$231.44	$33,933.26
23	$1,013.82	$787.60	$226.22	$33,145.66
24	$1,013.82	$792.85	$220.97	$32,352.81
25	$1,013.82	$798.13	$215.69	$31,554.68
26	$1,013.82	$803.46	$210.36	$30,751.22
27	$1,013.82	$808.81	$205.01	$29,942.41
28	$1,013.82	$814.20	$199.62	$29,128.20
29	$1,013.82	$819.63	$194.19	$28,308.57
30	$1,013.82	$825.10	$188.72	$27,483.48
31	$1,013.82	$830.60	$183.22	$26,652.88
32	$1,013.82	$836.13	$177.69	$25,816.75
33	$1,013.82	$841.71	$172.11	$24,975.04
34	$1,013.82	$847.32	$166.50	$24,127.72
35	$1,013.82	$852.97	$160.85	$23,274.75
36	$1,013.82	$858.66	$155.16	$22,416.09
37	$1,013.82	$864.38	$149.44	$21,551.71
38	$1,013.82	$870.14	$143.68	$20,681.57
39	$1,013.82	$875.94	$137.88	$19,805.63
40	$1,013.82	$881.78	$132.04	$18,923.85
41	$1,013.82	$887.66	$126.16	$18,036.19
42	$1,013.82	$893.58	$120.24	$17,142.61
43	$1,013.82	$899.54	$114.28	$16,243.07
44	$1,013.82	$905.53	$108.29	$15,337.54
45	$1,013.82	$911.57	$102.25	$14,425.97
46	$1,013.82	$917.65	$96.17	$13,508.32
47	$1,013.82	$923.76	$90.06	$12,584.56
48	$1,013.82	$929.92	$83.90	$11,654.63
49	$1,013.82	$936.12	$77.70	$10,718.51
50	$1,013.82	$942.36	$71.46	$9,776.15
51	$1,013.82	$948.65	$65.17	$8,827.50
52	$1,013.82	$954.97	$58.85	$7,872.53
53	$1,013.82	$961.34	$52.48	$6,911.20
54	$1,013.82	$967.75	$46.07	$5,943.45
55	$1,013.82	$974.20	$39.62	$4,969.25
56	$1,013.82	$980.69	$33.13	$3,988.56
57	$1,013.82	$987.23	$26.59	$3,001.33
58	$1,013.82	$993.81	$20.01	$2,007.52
59	$1,013.82	$1,000.44	$13.38	$1,007.09
60	$1,013.80	$1,007.09	$6.71	$0.00

Total Paid: $60,829.18Total Interest: $10,829.18

Business Loan Calculator with Extra Payments

Adding even small extra payments to a term loan can significantly reduce total interest over the life of the loan. Because interest is calculated on the remaining balance each month, every additional dollar applied to principal immediately stops future interest from accruing on that amount. Over a multi-year business term loan, the savings can be substantial.

Worked example (computed by engine): A $100,000 business term loan at 9% APR for 60 months has a base monthly payment of $2,075.84. By adding an extra $500.00 per month starting from month 1, you would save 13 months and $5,915.13 in total interest. The total payoff drops to $118,634.93 compared to $124,550.06 without extra payments. Use the extra payment fields in the calculator above to model your own early payoff scenario.

Business Loan Calculator Amortization

Amortization refers to how each monthly payment on a business loan is split between interest and principal. In the early months, the majority of the payment covers interest. As the balance declines, the interest portion shrinks and the principal portion grows. By the final months, nearly the entire payment goes toward reducing the principal.

The calculator above generates a full amortization schedule so you can see this shift month by month. For the $100,000 term loan at 9% APR over 60 months, the monthly payment is $2,075.84, total interest is $24,550.06, and the total cost over the full 60-month term is $124,550.06. Reviewing the schedule helps you understand exactly how much of each payment reduces your outstanding balance.

SBA Loan Calculator Monthly Payment

The U.S. Small Business Administration (SBA) does not lend money directly. Instead, it guarantees a portion of loans made by approved lenders, which reduces the lender's risk and typically results in lower rates for the borrower.

Current SBA 7(a) rates are set at prime plus a statutory spread (capped by the SBA) and change as the prime rate changes. For the latest rates, see the SBA's official fee schedule at sba.gov. You can model any SBA loan in the Term Loan mode above by entering the offered rate.

Source: U.S. Small Business Administration, 7(a) Loan Program Interest Rate & Fee Schedule. Last verified: July 2026.

Equipment Loan Payment Calculator

Equipment loans often include a balloon payment, which is a large lump sum due at the end of the loan term. The monthly payments are calculated on the financed amount minus the balloon, so each payment is lower than it would be on a fully amortizing loan. At maturity, the remaining balance must be paid in full or refinanced. This structure is common when equipment retains significant resale or residual value at the end of the financing term.

Worked example (computed by engine): A $50,000 equipment purchase with $10,000 down and a $15,000 balloon at 9% APR for 60 months. The amount financed is $40,000.00, producing monthly payments of $631.46. The $15,000.00 balloon is due at month 60. Total cost of the financing is $62,887.60, with total interest of $12,887.60. Note that the balloon reduces the monthly payment compared to a standard term loan on the same amount.

Merchant Cash Advance Calculator

A merchant cash advance (MCA) is not a loan. It is a purchase of future receivables. The funder provides an upfront cash advance in exchange for a fixed total payback amount, expressed as a factor rate (for example, 1.4 means you repay $1.40 for every $1.00 advanced). The cost is therefore a fixed finance charge, not an interest rate that accrues on a declining balance.

Worked example (computed by engine): A $50,000 advance at a 1.4 factor rate over 12 months. Total payback is $70,000.00, finance charge is $20,000.00, and the effective APR is 40.0%. Daily remittance is $191.78 and weekly remittance is $1,342.46 (weekly is exactly 7 times daily).

Important: MCA Cost Disclosure Limitations

Factor rates are not APRs and cannot be directly compared to interest rates on traditional loans.
MCAs are largely unregulated at the federal level and in many states, meaning there are no caps on factor rates or mandatory disclosures.
Faster repayment means a higher effective APR because the same fixed fee is compressed into fewer months.
Daily ACH withholdings create cash flow pressure, since the remittance is pulled automatically every business day regardless of your actual sales volume on that day.
The “effective APR” shown is a simple annualized approximation, not a Truth in Lending Act disclosure.

Frequently Asked Questions

How is a business loan different from a personal loan?

Business loans typically offer higher amounts, longer terms, and may use business assets as collateral. Interest rates vary widely depending on the lender, loan type, and the borrower's credit profile. SBA loans offer the most favorable rates, while merchant cash advances carry the highest effective costs.

What is a balloon payment on an equipment loan?

A balloon payment is a large lump sum due at the end of the loan term. The monthly payments are calculated on the loan amount minus the balloon, so each payment is lower than it would be on a fully amortizing loan. At maturity, the remaining balance (the balloon) must be paid in full or refinanced.

Why does a merchant cash advance have a higher APR when repaid faster?

Because the total payback amount is fixed in advance. Whether you repay in 6 months or 12 months, you pay the same total. Shortening the repayment period means the same fee is spread over fewer days, which raises the annualized cost. This is the opposite of a traditional loan, where paying faster always reduces total cost.

Should I use the Term Loan or Equipment Loan mode?

Use Term Loan for standard business loans with no balloon payment. Use Equipment Loan when financing equipment with a residual or buyout value at the end of the term. If your equipment lease quotes a residual value, enter it as the balloon amount.

What is an SBA 7(a) loan?

The SBA 7(a) program is the SBA's primary loan product for small businesses. The SBA guarantees a portion of the loan, which reduces the lender's risk and often results in lower rates. Rates are tied to the prime rate plus a statutory spread. Not all businesses qualify, and the application process can take several weeks.

Related Calculators

Compare business loan costs against other short-term lending products with our Title Loan Calculator or Payday Loan APR Calculator, or browse all tools on the Loan Calculators hub.

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