A $100,000 business loan at 8% for 5 years costs $2,027.64 a month and $21,658.37 in total interest. Stretching it to 10 years drops the payment to $1,213.28 but more than doubles interest to $45,593.11. Enter your amount, rate and term to compare, then check the APR. Fees can make a lower-rate offer more expensive.
This business loan calculator estimates the monthly payment on a fixed rate amortizing loan. Enter principal, annual interest rate, and term in months. The result shows monthly payment plus total paid and total interest over the full term.
Owners use it when comparing term loan offers, sizing equipment finance, or checking whether a payment fits monthly cash flow. If the offer is a lease instead, see equipment lease payments: $1 buyout vs FMV. If shipping is a major cost line, the freight class calculator helps estimate LTL class before you request quotes. For general personal loans with the same PMT math, the loan calculator is a close sibling page.
How the payment is calculated
Monthly rate equals annual rate divided by 100 then by 12. Payment follows the standard amortizing PMT formula on principal, monthly rate, and month count. Total paid is payment times months. Interest is total paid minus principal.
Worked example
Principal $100,000, rate 8 percent, term 60 months. Monthly payment is about $2,027.64.
| Input | Value |
|---|---|
| Principal | $100,000 |
| Rate | 8% |
| Months | 60 |
| Monthly payment | ~$2,027.64 |
Payment and interest on $100,000
| Rate | 36 months | 60 months | 84 months | 120 months |
|---|---|---|---|---|
| 8% | $3,133.64 | $2,027.64 | $1,558.62 | $1,213.28 |
| 10% | $3,226.72 | $2,124.70 | $1,660.12 | $1,321.51 |
| 13% | $3,369.40 | $2,275.31 | $1,819.20 | $1,493.11 |
Total interest at 60 months is $21,658.37 at 8%, $27,482.27 at 10% and $36,518.44 at 13%. At 13% over 120 months it is $79,172.89. Standard amortizing payments with no fees.
SBA 7(a) maximum interest rates
| Loan amount | Max variable rate | With prime at 7.00% |
|---|---|---|
| $50,000 or less | Base rate + 6.5% | 13.5% |
| $50,001 – $250,000 | Base rate + 6.0% | 13.0% |
| $250,001 – $350,000 | Base rate + 4.5% | 11.5% |
| Over $350,000 | Base rate + 3.0% | 10.0% |
The 7(a) maximum loan is $5 million. Term loans generally run up to 10 years, or up to 25 years for real estate. Sources: SBA 7(a) terms, conditions and eligibility, SBA 7(a) loans. Bank prime rate of 7.00% from the Federal Reserve H.15 release (October 27, 2026). These are caps, not quotes.
How to use the calculator
- Enter the amount you will borrow after fees that are not rolled in, or include rolled fees in principal if that matches the note.
- Enter the nominal annual rate on the loan.
- Enter term months (for example 36, 60, or 84).
- Compare payment to average monthly free cash flow with a buffer.
Fees, APR, and sticker rate
A lower rate with high fees can cost more than a slightly higher rate with low fees. Lenders must disclose the APR on consumer loans; for business credit, ask for it in writing. (CFPB: interest rate vs APR) This page focuses on the amortizing payment from rate and principal. For a simple fee-inclusive approximation, use the APR calculator.
Planning uses
Run best case and worse case rates. Shorten the term to see higher payments and lower total interest. Lengthen the term to ease cash flow at the cost of more interest. After payment is set, screen returns with the ROI calculator if the loan funds a project with measurable profit.
Common mistakes
- Entering years in the months field
- Ignoring personal guarantees and covenants that affect risk
- Matching payment to peak month revenue instead of a conservative average
- Forgetting balloon structures that this simple PMT model does not represent
Matching loan structure to the asset
Equipment with a five year useful life often pairs with a term near that horizon. If you would rather lease than borrow, the lease calculator estimates a payment with a residual value. Working capital needs may fit shorter revolving tools better than a five year amortizing note. If you are weighing a cash advance instead, the merchant cash advance APR calculator turns a factor rate into an APR-style cost. Long amortizations lower the payment but can leave you paying for an asset that is already replaced. Financing a tractor or other farm machinery? Use the farm equipment loan calculator for seasonal payment schedules.
Use this calculator to see payment at 36, 60, and 84 months side by side. Then ask whether the asset or project still produces cash after the last payment month.
Before you sign
- Compare APR, not just the rate, because fees change the real cost.
- Check prepayment terms and penalties before you refinance or pay early.
- Match the term to the asset’s life so you are not paying for something already replaced.
- Keep a cash buffer for at least a few payments, and check your new break-even point because loan repayments add to fixed costs.
Comparing lender term sheets
- Match principal after fees that are financed.
- Match month counts so payment comparisons are fair.
- List fees outside the PMT and decide whether APR style screening is needed.
- Note prepayment penalties that trap you if you refinance early.
When the loan funds a growth project, translate payment into required monthly gross profit. If the project cannot clear payment plus a margin of safety, the rate is not the real problem. The business case is. Pair payment output with ROI style checks so financing and returns stay on the same page.
Revisit the business loan calculator whenever a lender revises rate or term. Small term changes can move payment more than borrowers expect, especially on shorter schedules.
Limitations
Variable rates, interest only periods, and balloons need a different schedule. Confirm the lender amortization method before you sign.