Business Loan Calculator
Calculate payment amounts, total repayment, and total interest for a business loan across monthly, weekly, or biweekly payment schedules.
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How to use this calculator
P = loan principal, r = periodic interest rate, n = total number of payments (varies by frequency).
- 1
Enter the total business loan amount you need.
- 2
Enter the annual interest rate quoted by your lender.
- 3
Enter the loan term in months (e.g. 60 for a 5-year term).
- 4
Select your preferred payment frequency — monthly, biweekly, or weekly.
Frequently asked questions
Does paying weekly or biweekly save money?
Yes, modestly. More frequent payments reduce the outstanding principal faster, cutting total interest. On a $50,000 / 7.5% / 60-month loan, switching from monthly to weekly payments saves roughly $500–$700 in total interest.
What is a typical interest rate for a business loan?
Rates vary widely: SBA 7(a) loans range from 7–12%; traditional bank loans 5–10%; online lenders 10–30%+. Your credit score, business age, revenue, and collateral all influence the rate offered.
Should I choose a shorter or longer loan term?
A shorter term means higher periodic payments but significantly less total interest. A longer term eases cash flow but costs more overall. Many businesses choose the longest affordable term to preserve working capital.
Are there fees not captured by this calculator?
Yes — origination fees, guarantee fees (for SBA loans), prepayment penalties, and annual review fees can add up. Always calculate the APR (Annual Percentage Rate), which folds in fees, for a true cost comparison.
Understanding business loan costs
Fixed vs variable rate business loans
Fixed-rate loans lock in your payment amount for the full term — ideal for budgeting. Variable-rate loans may start lower but can rise with market rates. For loans under 5 years, variable rates can be attractive; for longer terms, most businesses prefer the certainty of fixed rates.
SBA loans vs conventional business loans
SBA (Small Business Administration) loans are partially guaranteed by the government, allowing lenders to offer lower rates and longer terms. The tradeoff is a longer approval process and strict eligibility requirements. Conventional bank loans close faster but typically demand stronger financials and collateral.
Improving your loan terms
A business credit score above 700, two or more years of operating history, and consistent revenue all improve loan terms. Offering collateral (equipment, property, receivables) can further reduce the rate. Preparing clean financial statements — P&L, balance sheet, 2 years of tax returns — speeds approval and signals credibility.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →