Use our Business Loan Calculator to estimate your payment, total interest, and payoff time before you borrow. Quickly compare loan terms, rates, and payment frequencies to make confident financing decisions for your company.
What the Business Loan Calculator does
The Business Loan Calculator helps you forecast the cost of borrowing by estimating your periodic payment, total interest over the life of the loan, and how long it will take to pay off. It works for common business loan structures where you make equal payments on a set schedule (monthly, biweekly, or weekly). You can also model origination fees and optional extra payments to see how much interest you can save by paying a little more each period.
Key inputs you can control
- Loan amount: The principal you plan to borrow.
- APR: The annual percentage rate your lender offers.
- Term (years): How long you will take to repay.
- Payment frequency: Monthly, biweekly, or weekly schedules.
- Origination fee (%): A common upfront fee on business loans.
- Extra payment per period: An optional amount added to each payment to shorten payoff time.
How the calculation works
For amortizing loans, your payment is calculated using the standard formula that spreads principal and interest evenly across the schedule. The calculator converts the annual interest rate (APR) into a periodic rate based on your selected frequency (12, 26, or 52 periods per year). It then computes the fixed payment required to fully amortize the loan over the chosen term. If you add an extra amount to each payment, the calculator simulates accelerated payoff by applying the extra directly to principal each period, updating the balance and interest until the loan is retired.
Why payment frequency matters
More frequent payments can reduce total interest because you chip away at principal faster. For example, paying biweekly or weekly typically lowers overall interest compared to monthly payments at the same APR and term. The calculator translates your chosen frequency into the correct periodic rate and number of payments so you can compare scenarios apples-to-apples.
How to use the Business Loan Calculator
- Enter the loan amount and APR from your lender quote.
- Choose a realistic term that aligns with your cash flow.
- Select your preferred payment frequency.
- Add the origination fee percentage if your lender charges one.
- Optionally add an extra payment per period to model faster payoff.
- Click Calculate to see payment, total interest, and payoff time. Adjust inputs to compare offers.
Interpreting your results
Your results show the periodic payment, the total of payments, and the total interest over the life of the loan. If you entered an origination fee, you will also see the estimated dollar amount for that fee. When you include an extra payment, the calculator displays the new number of payments, an approximate time-to-payoff, and how much interest you could save. Use these figures to evaluate whether a higher payment or a different term provides better overall value.
Tips for choosing the best loan
- Compare multiple lender quotes: Small APR differences can lead to large interest savings over multi-year terms.
- Match the term to the asset life: Avoid long terms for short-lived assets to prevent overpaying interest.
- Watch fees: Origination and documentation fees affect your effective cost of capital.
- Stress-test cash flow: Use the calculator to ensure the payment fits your slowest revenue months.
- Consider extra payments: Even modest extra amounts can accelerate payoff and reduce interest dramatically.
Limitations and assumptions
The Business Loan Calculator assumes a fully amortizing, fixed-rate loan with level payments on a consistent schedule. Real-world business loans may include variable rates, interest-only periods, or prepayment penalties. Always confirm terms with your lender and review the loan agreement. The calculator is for planning and comparison purposes and is not financial advice.
With clear estimates of payment, interest, and payoff time, you can negotiate confidently and choose the financing structure that best supports your growth goals.