Estimate your monthly payment, annual debt service, and total repayment cost on a fixed-rate business loan.
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years
Your results
$0
Monthly Payment
$0
Annual Debt Service
$0
Total Interest
$0
Total Repayment
Remaining Balance
How the Business Loan Calculator works
A standard business term loan works like most other installment loans: you borrow a fixed amount and
repay it in equal monthly payments over the loan term, with each payment covering interest first and
the remainder reducing principal.
Beyond the monthly payment, lenders and business owners often think in terms of annual debt
service — the total principal and interest paid each year — since it's easier to compare
against annual revenue or cash flow projections.
Payment = (P × r) / (1 − (1 + r)^−n)
Before taking on a business loan, model a few different rate and term scenarios to see how they
affect both your monthly cash flow and your total borrowing cost — a longer term lowers the payment
but usually increases total interest paid.
Frequently asked questions
Rates vary widely based on the lender, loan type, and your business's creditworthiness — typically ranging from around 6% for well-qualified borrowers with bank or SBA loans to well into the double digits for online or short-term lenders.
A fixed rate keeps your payment predictable for budgeting, while a variable rate may start lower but can rise over time with market rates. If cash flow stability matters most to your business, a fixed rate is usually the safer choice.
Yes, for estimating the standard payment on the amortizing portion of an SBA loan. Keep in mind that SBA loans often include additional guarantee fees and closing costs that this calculator doesn't factor in.
Debt service is the total amount of principal and interest you must pay on your debt over a given period — commonly measured annually. Lenders look at your debt service relative to your business income (your debt service coverage ratio) to judge whether you can comfortably afford the loan.