Free business loan calculator

Enter principal, interest rate, term and origination fees to estimate monthly payment, total interest, fees and total loan cost.

See the repayment timelineCompare principal, interest and monthly payments.

Create an estimate

Free, no sign-up, and the entered values stay in your browser.

Business loan payment

Currency

Loan principal

USD

Annual interest rate

Loan term

months

Origination fee

Fixed origination fee

USD

Fee treatment

Monthly payment$506.91

Origination fees$250.00

Net proceeds$25,000.00

Total paid$30,664.58

Total interest$5,414.58

Loan start dateFirst payment is assumed one month after this date.

Estimated payoff date—

Estimated fee-inclusive APR—

Interest and fees—

Cash-flow estimate with equal monthly periods, not a lender’s regulatory APR disclosure.

View amortization schedule

Payment	Principal	Interest	Payment total	Balance

This models a fully amortizing fixed-rate loan and entered origination fees. It excludes variable rates, balloons, insurance and lender-specific timing rules.

How to use the business loan calculator

Compare equal-payment loans using the cash you receive, the monthly commitment and the full financing cost. Add origination fees and an optional start date, then inspect how each payment is divided between interest and principal. A low monthly payment does not necessarily mean a low-cost loan.

Enter the principal
Use the amount to be borrowed before the fee treatment below. For a purchase, account separately for a deposit or trade-in so you do not finance the same amount twice.
Use the contractual interest rate
Enter the annual interest rate charged on the loan balance, not a fee-inclusive APR that would count the entered fees again.
Set the term in months
Convert years to months where necessary. A longer term usually lowers the payment but increases total interest at the same rate.
Choose an optional start date
The displayed schedule assumes the first payment is one month later. Month-end dates use the last valid day of a shorter month.
Enter origination charges
Add percentage and fixed fees only when both apply. Choose whether they are paid upfront, deducted from the disbursement or included in the financed balance.
Review the complete summary
Compare payment, interest, fees, total paid, net proceeds, payoff date and estimated fee-inclusive APR. Check the complete budget, not just one result.
Expand the repayment schedule
Read the monthly principal, interest and remaining balance. Compare the calculation with the lender's dates, rounding and formal disclosure before relying on it.

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Understand the cash commitment before comparing offers

This calculator models a fixed-rate loan repaid through equal monthly installments that fully amortize the balance. It can illustrate a car purchase, a personal loan, equipment borrowing, a home loan's principal-and-interest portion or a small-business term loan when those assumptions fit.

It does not model a revolving credit line, a variable-rate reset, an interest-only introductory period, irregular repayments or a final balloon. A lender may also use daily interest accrual or payment-date rules that differ from the monthly model.

Monthly payment: the regular scheduled installment, before outside ownership costs.
Principal and interest: distinguish repayment of borrowed money from the cost of borrowing.
Fees and proceeds: see why a quoted principal may differ from cash available to use.
Full term and payoff: understand how long the obligation lasts under the assumed schedule.
Schedule: see how the balance declines and how the interest share changes.
Fee-inclusive rate estimate: compare the payment stream with the net initial cash benefit.

The page is a planning tool, not a credit offer, eligibility decision or substitute for a lender's contract. No entered amount or calculated payment establishes that a loan is affordable or approved.

Monthly payment formula and amortization

Let P be financed principal, r the monthly interest rate as a decimal, and n the number of monthly payments. For a positive rate:

r = annual interest rate (%) ÷ 100 ÷ 12
Monthly payment M = P × r ÷ [1 − (1 + r)⁻ⁿ]
Monthly interest = opening balance × r
Principal repaid = M − monthly interest
Closing balance = opening balance − principal repaid

At a 0% rate, payment is simply P ÷ n. This is a separate mathematical case because the ordinary expression has a zero denominator as written. For a $12,000 zero-interest loan over 24 months with no fees, payment is $500.

On a standard amortizing loan, early payments usually contain more interest because the outstanding balance is larger. As principal falls, monthly interest falls and more of the same installment reduces the balance. The payment is not divided evenly between principal and interest.

For a $10,000 loan at 6% over 36 months, r = 0.005 and M is approximately $304.219. The first month's interest is $50, principal repaid is about $254.219 and the remaining balance is about $9,745.781.

Payment	Opening balance	Interest	Principal	Closing balance
1	$10,000.00	$50.00	$254.22	$9,745.78
2	$9,745.78	$48.73	$255.49	$9,490.29
3	$9,490.29	$47.45	$256.77	$9,233.52

The example uses full precision internally and displays cents. A contract that rounds each payment or accrues daily interest may make a small adjustment to the last installment. Over the full term, the unrounded modeled payments total about $10,951.90, including $951.90 of interest.

Three ways origination fees affect the loan

Fees can change the amount financed, the cash received or the payment made at the start. Those are different effects. The worksheet adds a percentage fee and a fixed fee when both are entered:

Origination fees = original principal × percentage fee ÷ 100 + fixed fee

For an original principal of $20,000, a 2% fee and a $100 fixed fee produce $500 of total origination charges. Here is how each treatment works:

Treatment	Cash movement at the start	Balance used for monthly payment	Important comparison
Paid upfront	Receive $20,000; separately pay $500	$20,000	Net initial benefit is $19,500 after the fee
Deducted from proceeds	Receive $19,500 after withholding $500	$20,000	Repay the full principal even though less cash arrives
Financed with the loan	Receive $20,000; $500 added to the balance	$20,500	The fee itself also incurs interest

Under otherwise identical timing, paying a fee upfront and deducting it from proceeds can have the same net initial cash benefit. Their displayed disbursements differ, so compare the whole cash movement instead of only the amount deposited.

A financed fee is not a free fee. It increases scheduled payments and interest. If the actual lender calculates a percentage against a different base, requires a minimum fee, or charges additional closing costs, use the formal amounts and terms rather than assuming this simple fee formula applies.

Interest rate, estimated APR and financing cost

The interest rate is applied to the loan balance. APR is a broader annualized measure that can include applicable finance charges. The Consumer Financial Protection Bureau explains this distinction; the lender's formal disclosure determines the regulated APR for the particular loan.

This page's estimate finds the monthly rate i for which the present value of scheduled installments equals the net initial funds, then reports 12 × i as an annual percentage. It assumes regular monthly periods and the entered fee treatment.

Net initial funds = sum of M ÷ (1 + i)^k, for k = 1 through n
Estimated fee-inclusive APR (%) = i × 12 × 100
Total financing cost in this model = interest + origination fees

Fees paid immediately reduce the initial cash benefit; financed fees raise the payment balance. Do not enter a fee-inclusive APR as the contractual rate and then add those same fees again. That would overstate the cost.

The estimated nominal APR is also different from an effective annual rate calculated as (1 + i)¹² − 1. Which measure a lender must disclose depends on the applicable product and rules. Dates, day-count conventions, excluded charges and irregular periods can make the formal number differ.

Read the dates and repayment schedule

The start date is optional. When supplied, the first installment is modeled one month after that date and the last after the selected number of months. A January 31 start therefore uses the last valid date in February for its first installment; later dates are derived from the original day rather than repeatedly drifting earlier.

Schedule item	Meaning	What to check
Payment date or number	The assumed position of the installment	Actual contract due dates, holidays and first-payment delay
Principal	The part reducing the balance	Whether extra principal or financed charges apply
Interest	The modeled cost on the opening balance	Monthly versus daily accrual and rate changes
Payment	Scheduled principal plus interest	Other charges collected with the payment
Remaining balance	Debt left after the installment	Final rounding or any contractual balloon

This schedule assumes regular payments only. It does not calculate extra-payment timing or prepayment penalties. Ask the lender how additional money is applied and request an updated schedule if you intend to pay early. A smaller number from changing the term alone is not the same as modeling an unscheduled payment.

Compare borrowing within the full personal or business budget

Vehicle, personal and equipment loans

Start with the actual financed amount after a deposit or trade-in. Include insurance, repairs, operating costs and maintenance in a separate budget. A longer loan may reduce the monthly installment but leave a balance outstanding for more years.

Home borrowing

The calculated payment is principal and interest only. Property taxes, insurance, mortgage insurance, association charges, maintenance and escrow adjustments can make the real monthly housing payment larger. A loan-to-value ratio also uses the lender's relevant valuation, which may differ from a hoped-for resale price.

Business debt service

Annual debt service for a level monthly payment is 12 × monthly payment. Compare it with the income or cash measure required by the lender. Debt-service coverage ratio, or DSCR, is available income for debt service divided by debt service. Accounting profit, operating cash and a lender's adjusted measure are not automatically the same.

A fair offer comparison

Match the amount of cash needed, not just the advertised principal.
Compare interest, applicable fees and any security required.
Review monthly payment and total financing cost together.
Check prepayment, late-payment and variable-rate terms outside this model.
Allow room for uncertain income or operating costs before committing.

A calculator can estimate a balance supported by a chosen payment, but it cannot determine credit qualification. Lenders may assess income, credit history, existing obligations, collateral and other criteria under their own policies.

Four complete loan comparison examples

Illustrative calculations, not market quotes. Replace these assumptions with your own costs and measurements.

Vehicle loan with a financed fee

Borrow $24,000 for a vehicle, with a 2.5% origination fee added to the balance, a 6% annual contractual interest rate and 60 monthly payments.

Fee = $24,000 × 2.5% = $600.
Financed balance = $24,600; cash made available for the purchase remains $24,000.
Monthly rate = 0.06 ÷ 12 = 0.005.
Monthly payment ≈ $475.59.
Unrounded installments total ≈ $28,535.22.
Interest on the financed balance ≈ $3,935.22; interest plus the $600 fee is $4,535.22.

The fee increases both the balance and interest. The first payment contains $123 interest and about $352.59 principal. Insurance and vehicle ownership costs are not included.

Payment: about $475.59 · Financing cost: about $4,535.22

Home loan with an upfront charge

Consider $300,000 financed at 6.25% for 360 months, plus a $1,200 fee paid separately at the start.

Monthly payment on $300,000 ≈ $1,847.15.
Scheduled installments total ≈ $664,974.58.
Interest = $664,974.58 − $300,000 = $364,974.58.
Total cash paid including the upfront fee ≈ $666,174.58.
Interest plus the fee ≈ $366,174.58.

The initial loan disbursement is $300,000, while its net cash benefit after the fee is $298,800. The illustration excludes taxes, insurance, escrow, other closing charges and ownership expenses. It is not a mortgage offer.

Principal-and-interest payment: about $1,847.15

Personal loan: distinguish cash received from balance repaid

A $12,000 personal loan has a 5% fee financed into the balance. The contractual rate is 10% and the term is 36 months.

Fee = $12,000 × 5% = $600.
Financed principal = $12,600; cash received = $12,000.
Monthly payment ≈ $406.57.
Installments total ≈ $14,636.40.
Interest on $12,600 ≈ $2,036.40.
Total financing cost = $2,036.40 + $600 = $2,636.40.

If the same fee were deducted instead, cash received would be $11,400 and payments would be based on $12,000. Those alternatives should be compared against the actual cash needed, not treated as identical disbursements.

Cash received: $12,000 · Payment: about $406.57

Business equipment loan and debt-service coverage

A business models an $80,000 equipment loan at 7.5% over 60 months with no origination fee. It estimates $30,000 per year available for this debt service under a stated cash-flow definition.

Monthly payment ≈ $1,603.04.
Annual debt service using full precision ≈ $19,236.43.
DSCR = $30,000 ÷ $19,236.43 ≈ 1.56.
Total scheduled interest ≈ $16,182.15.

A ratio of 1.56 means the stated available income is 1.56 times modeled debt service; it does not establish approval. Include other debt where the lender requires it and test a weaker operating year. The lender may use a different income definition.

Payment: about $1,603.04 · Illustrative DSCR: 1.56

Loan calculator questions

How do I calculate one month's loan interest?

In this monthly model, multiply the opening balance by the annual contractual rate divided by 100 and 12. A $20,000 balance at 6% produces $100 interest for the first modeled month. A lender using actual daily accrual may calculate a different amount for a period with more or fewer days.

Can I work backward from a monthly budget to a loan amount?

For monthly rate r, term n and available payment M, the supported financed balance is P = M × [1 − (1 + r)⁻ⁿ] ÷ r. At 0%, P = M × n. This is a mathematical payment budget, not a lending qualification. Fees and other obligations must still be considered.

How is interest on a car loan estimated?

Use the financed amount after the deposit or trade-in, the contractual annual rate and the repayment term. On a standard amortizing loan, each month's interest is based on its opening balance; multiplying the original principal by the annual rate and all the years usually overstates interest because the balance is being repaid.

What does APR include?

APR can include interest and applicable finance charges. The exact treatment depends on the loan and governing rules. This calculator shows a fee-inclusive estimate from the specified cash flows. Use the lender's formal APR disclosure for a regulated offer rather than assuming all fees or date conventions are identical.

How do I calculate loan-to-value?

LTV = loan amount ÷ the relevant asset value × 100. A $160,000 loan against a $200,000 value is 80%. Confirm the valuation and which debts the lender includes; combined loan-to-value may include more than one secured loan.

What formula produces the regular monthly payment?

For a positive monthly rate r, financed principal P and n payments, M = P × r ÷ [1 − (1 + r)⁻ⁿ]. Convert an annual percentage to a monthly decimal first. At 0%, divide principal by the number of payments. The model assumes equal monthly installments and full repayment.

What information do I need to use the calculator?

Collect the amount, contractual interest rate, term in months, fees and fee treatment. Add the start date to see calendar dates. Review the summary and expand the schedule, then compare the assumptions with the lender's written terms. Enter zero for an absent fee rather than inventing one.

How is the fee-inclusive APR estimate solved?

The calculation searches for the monthly discount rate at which the scheduled payments have a present value equal to the net initial funds. It multiplies that monthly rate by twelve. Upfront or deducted fees reduce initial net funds; financed fees increase the payment balance. Irregular dates and different disclosure rules can produce a different official APR.

Why does principal repayment increase later in a car-loan schedule?

With a fixed installment, less interest is charged as the balance falls. More of each later installment is therefore available to repay principal. This is amortization. An interest-only period, variable rate or balloon structure would need a different model.

How do I calculate total interest over the loan?

For this level-payment model, multiply the unrounded monthly installment by the number of payments and subtract financed principal. Keep origination fees separate when reporting interest, then add them to show total financing cost. A financed fee is part of financed principal and should not be counted twice as interest.

Can I calculate payments at a zero interest rate?

Yes. Divide financed principal by the term in months. A $12,000 balance over 24 months is $500 per month. A loan can still have a nonzero financing cost or fee-inclusive APR if origination charges apply despite a 0% contractual interest rate.

What should a useful loan comparison include?

Check cash received, payment, term, interest, fees, total paid and the full schedule. Also review security, prepayment rules and charges outside the calculator. This page does not model extra payments or provide a saved schedule export; use a lender's revised schedule or an appropriate cash-flow worksheet when those features are needed.