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Business Loan Calculator

Use this business loan calculator to estimate your monthly payments and interest based on the loan term and APR.
Last updated on January 18, 2023

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The cost of a small-business loan depends on the loan amount, repayment term and annual interest rate.
Enter these numbers into NerdWallet’s business loan calculator to estimate your monthly payment, total interest costs and total amount repaid. Then adjust the loan characteristics to see how changes can affect repayment.
Loan calculator icon

Calculate estimated payments, then see if you qualify for a business loan

The pre-filled values are general estimates of possible terms you may see with this type of loan. Any loan offer’s final interest rate and terms will depend on your qualifications.

Over the course of the loan, expect to pay


Payment breakdown

Total principal
Total interest
Total principal & interest

Get personalized small-business loan rates to compare

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Understanding your business loan calculator results

The best small-business loan is typically the one you can qualify for with the most ideal terms. As you search for business financing, you’ll want to compare interest rates, funding time and repayment terms, among other factors.
Here’s what you need to calculate the total cost of a business loan:
  • Loan amount. The total amount of capital your business borrows.
  • Repayment term. The time it takes to repay the loan.
  • Annual percentage rate. The annual cost of the loan that includes interest and fees. An APR makes it easier to do an apples-to-apples comparison between products. Keep in mind that some lenders do not provide APR and instead give a general interest rate, or a factor rate, that does not usually include fees.
By inputting this information into the calculator, you’ll receive:
  • Monthly payment. The fixed amount you’ll repay each month. It includes principal, interest and fees.
  • Total interest paid. The total amount a lender is charging you for a loan. If you repay the loan early, you might be able to save on interest.
  • Total payments. The sum of all the payments to make on the loan, which includes the amount you borrowed, plus interest and fees.
Learn more about interest rates:

Where to get a business loan

Small-business loans are available from banks, credit unions and online lenders. Terms, rates and qualifications vary by lender.
Business bank loans typically have the most competitive interest rates and repayment terms. Lots of different types of lenders exist for small businesses, but banks are the most well known. 
To qualify for a business bank loan, however, you’ll generally need a high personal credit score (starting in the 700s). Banks also tend to look for several years of operating history and strong cash flow from the business. Sometimes, these lenders require collateral or a personal guarantee.
Online lenders, on the other hand, usually have less stringent qualification requirements, making these loans more accessible to more business owners. These lenders can usually fund loans much more quickly than banks — as soon as the same or next day. They also tend to charge higher interest rates and have shorter terms, however.

How much do you need?

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We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Types of business loans

Here are some of the most common types of business loans:

SBA loans

The Small Business Administration works with banks and other financial institutions to provide small-business loans that have low interest rates and long repayment terms. However, SBA loans are slow to fund and it can be difficult to qualify for.
You must have good personal credit (690 or higher, although some SBA lenders may have lower score requirements), and the business must demonstrate strong financial performance.

Term loans

Term loans typically range from three to 18 months for a short-term loan to 10 years or longer for a long-term loan. Business owners can use the financing, which usually runs up to $500,000, for specific items such as equipment or inventory. Banks and online lenders both offer term loans.

Lines of credit

A business line of credit provides flexible access to cash. Similar to a credit card, you get a specific amount of credit and make payments only on the money you use. Banks and online lenders both offer business lines of credit.

Equipment financing

Equipment financing is a loan to buy equipment, and the equipment is used as collateral. Equipment lenders often finance up to 100% of the value of the equipment. You repay the loan over time with interest.

Alternative ways to finance your business

If you can’t meet traditional business loan requirements, you might consider these options instead.

Invoice factoring and invoice financing

Invoice factoring involves selling unpaid customer invoices to a factoring company that then collects the money from your customers.
Invoice financing is an alternative that gives you more control over the invoices. One advantage of invoice factoring and financing is that the funds arrive in your bank account relatively faster than other types of financing.

Personal loans

A personal loan for business may be an option for new businesses that don’t qualify for traditional financing. Lenders consider your personal credit score and income instead of your business history.

Business credit cards

A business credit card can also be easier to get than a small-business loan. However, business credit cards tend to have relatively low credit limits, but you can earn rewards, such as cash back or travel points.

Frequently Asked Questions