Small Business Loan Payment Calculator
This free small business loan payment calculator turns a loan quote into numbers you can budget for: enter the loan amount, annual APR, and term in years to see your monthly payment, total interest, and total payback — so you can compare offers and plan your cash flow before you borrow.
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Loan summary
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Principal vs interest
Estimate only — not lending advice. Actual loan offers vary by lender, credit history, fees, and taxes. Origination, SBA guarantee, closing, and other fees are not included.
How to use this calculator
Enter the loan amount — the principal you plan to borrow, before any lender fees. Then add the annual APR you've been quoted (or the rate you expect) and the term in years — 3, 5, 7, and 10 years are common for term loans; SBA loans can run to 25. Results update instantly as you change any input.
The headline number is your estimated monthly payment, but don't stop there: check the total interest and the total of all payments to see the loan's true cost. A longer term lowers the monthly bill while raising the total — the donut chart makes that trade-off visible.
The payoff timeline note shows when you'd make your final payment assuming fixed monthly payments starting now. Use it to line up the loan with your business planning horizon.
How it works
The calculator uses the standard loan amortization formula for fixed monthly payments:
M = L × r × (1+r)n / ((1+r)n − 1), where M is the monthly payment, L is the loan amount, r is the monthly interest rate (annual APR ÷ 1200), and n is the total number of payments (years × 12). With a 0% APR, the payment is simply L ÷ n.
Total of all payments is the monthly payment × n, and total interest is that total minus the loan amount. Under amortization, each payment first covers that month's interest on the remaining balance, and whatever is left reduces the principal — so early payments are interest-heavy and later ones are mostly principal.
Assumptions: the APR stays fixed for the whole term; payments are equal and made monthly on time; no fees, taxes, insurance, or prepayments. All figures are estimates for planning — not lending advice and not a loan offer.
Frequently asked questions
How is a small business loan payment calculated?
Lenders use the standard loan amortization formula: monthly payment = L x r x (1+r)^n / ((1+r)^n - 1), where L is the loan amount, r is the monthly rate (annual APR divided by 1200), and n is the total number of monthly payments. Each fixed payment covers that month's interest first, with the rest reducing the principal, so over time a larger share of each payment goes toward principal. With a 0% APR, the payment is simply the loan amount divided by the number of months.
What is a typical small business loan interest rate?
It varies widely. Traditional bank term loans and SBA 7(a) loans often land in the single digits for strong borrowers, online lenders and short-term products commonly run higher, sometimes well into double digits. Your actual rate depends on your credit profile, revenue, collateral, and the loan type. Shop several offers and compare the APR and total interest, not just the monthly payment.
Does a longer term mean lower payments?
Yes for the monthly amount: spreading the same balance over more months lowers each payment. But a longer term almost always raises the total interest you pay, so the loan costs more overall. Compare the total of all payments across terms, not just the monthly figure, when deciding what you can afford.
What fees and costs are not included here?
This calculator covers principal and interest only. It does not include origination fees, SBA guarantee fees, closing costs, taxes, insurance, or penalties, which many real loans carry and which raise the true cost of borrowing. Figures here are estimates for planning, not lending advice and not a loan offer.
Can this calculator estimate SBA 7(a) loan payments?
Yes as an approximation: enter the loan amount, the quoted interest rate, and the repayment term in years, and the standard amortization formula produces the scheduled monthly payment. Keep in mind that SBA 7(a) loans also include a guarantee fee and possible packaging fees that this calculator does not add in, so the real cost will be slightly higher.