Calculate monthly payments and total debt cost for your business venture.
Estimated Monthly Payment:
Total Interest Paid:
Total Cost of Loan:
How to Use the Business Loan Calculator
Securing capital is a critical step for business expansion, inventory purchasing, or bridging cash flow gaps. This calculator helps business owners determine the monthly debt service requirements and the total cost of borrowing before signing a loan agreement.
Key Components of Business Lending
Principal: The actual amount of money you are borrowing.
APR (Annual Percentage Rate): The yearly interest rate charged by the lender. Business loans often vary based on credit score and collateral.
Loan Term: The duration you have to repay the debt, typically expressed in months for commercial loans.
Fees: Many business lenders charge "Origination Fees" which are usually 1% to 5% of the loan amount, deducted upfront or added to the balance.
Realistic Calculation Example
Imagine a small bakery needs $25,000 to upgrade its commercial ovens. They qualify for a loan with a 9% interest rate and a 24-month term. The lender charges a $250 origination fee.
Metric
Value
Monthly Payment
$1,142.11
Total Interest Paid
$2,410.64
Total Out-of-Pocket
$27,660.64
Factors That Affect Your Business Loan Rates
Lenders evaluate several "Cs" of credit when determining your interest rate: Character (credit history), Capacity (cash flow to repay), Capital (your investment in the business), Collateral (assets to secure the loan), and Conditions (the purpose of the loan and industry trends).
Using this calculator allows you to stress-test your business budget. If the monthly payment exceeds 10-15% of your gross monthly revenue, the debt might place too much strain on your operations.
function calculateBizLoan() {
var principal = parseFloat(document.getElementById('biz_loan_amount').value);
var annualRate = parseFloat(document.getElementById('biz_interest_rate').value);
var months = parseInt(document.getElementById('biz_loan_term').value);
var fees = parseFloat(document.getElementById('biz_fees').value);
if (isNaN(principal) || isNaN(annualRate) || isNaN(months) || principal <= 0 || months <= 0) {
alert("Please enter valid positive numbers for amount, rate, and term.");
return;
}
if (isNaN(fees)) { fees = 0; }
var monthlyRate = annualRate / 100 / 12;
var monthlyPayment = 0;
if (monthlyRate === 0) {
monthlyPayment = principal / months;
} else {
var x = Math.pow(1 + monthlyRate, months);
monthlyPayment = (principal * x * monthlyRate) / (x – 1);
}
var totalRepayment = monthlyPayment * months;
var totalInterest = totalRepayment – principal;
var totalCost = totalRepayment + fees;
document.getElementById('res_monthly').innerText = '$' + monthlyPayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('res_interest').innerText = '$' + totalInterest.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('res_total').innerText = '$' + totalCost.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('biz_results').style.display = 'block';
}