Business Loan Payment Calculator
Amortization schedule and total cost for term business loans.
Business term loans have fixed monthly payments. Formula: PMT = P * [r(1+r)^n] / [(1+r)^n - 1], where P=principal, r=monthly rate, n=months. This calculator shows monthly payment, total interest, and total cost over the life of the loan.
Inputs
Results
Monthly payment: $1,014
Total interest: $10,828
Total cost: $60,828
Insights
Formula
PMT = P * [r(1+r)^n] / [(1+r)^n - 1] r = APR/12, n = term in months
Input Definitions
What does each input mean?
- Loan amount
- Principal—the amount you borrow. Total cost = principal + interest.
- APR
- Annual percentage rate. Converts to monthly rate for amortization.
- Term
- Number of months to repay. Shorter terms mean higher payments but less interest.
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Before You Borrow, Understand the Full Cost
Business loans rarely come with a simple interest rate — there are origination fees, prepayment penalties, and the difference between APR and the stated rate can be significant. Whether you’re evaluating a term loan, SBA financing, or an online lender offer, this calculator helps you see the total repayment cost, monthly payment obligation, and what the money will actually cost your business over time.
Use this before accepting any loan offer so you can compare options on equal footing, when you need to build a cash flow model that includes debt service, or when you’re trying to figure out whether the ROI on a business investment justifies the borrowing cost. The best loan isn’t always the one with the lowest monthly payment — this tool helps you see why.