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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.
By Tina Orem, Randa Kriss
Last updated on June 11, 2024
Edited byChristine Aebischer

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⏰ Estimated read time: 6 minutes

Before you commit to a small-business loan it’s important to understand your loan amortization and total cost of borrowing.
Enter your loan amount, repayment term and annual interest rate 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

Estimate payments to understand the cost of 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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How to use the business loan calculator

1. Enter your information

  • Loan amount. This is the amount of money you plan to borrow. 
  • Repayment term. This is how long you have to repay your loan. Make sure you enter your repayment term in months. 
  • APR. Annual percentage rate (APR) represents the total cost of borrowing, including interest rate and fees, over the life of your loan. If your lender gives an interest rate or factor rate, you can calculate your APR by adding in fees to your total loan amount, or by multiplying the factor rate by your total loan amount.
Learn more about interest rates:

2. Calculate your results

Once you click “calculate,” the calculator will automatically generate results. Feel free to adjust the inputs to understand different loan scenarios.

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.

Understanding your results

By inputting this information into the business loan 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 — provided your lender doesn’t charge prepayment penalties.
  • Total payments. The sum of all the payments to make on the loan, which includes the amount you borrowed, plus interest and fees.
  • Amortization schedule. This schedule shows how much of your monthly (or annual) payments will go toward your principal and how much will go toward interest. As you continue to repay your loan over time, your monthly payment will remain the same, but your interest payments will get smaller and more of your payment will go toward your principal.

Types of business loans

Small-business loans are available from banks, credit unions and online lenders. Terms, rates and qualifications vary by lender. 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 can be difficult to qualify for.
  • Term loans. Term loans typically range from three to 18 months for a short-term loan and up to 10 years or longer for a long-term loan. The loans can be used for a variety of purposes, including working capital. 
  • Lines of credit. A business line of credit provides flexible access to cash. You get approved for a specific amount of credit and can draw from your line as needed. You only make payments and pay interest on the money you use. 
  • Equipment financing. Equipment financing is used to purchase equipment. Lenders often finance up to 100% of the value of the equipment. These loans are self-collateralizing, meaning the equipment itself serves as collateral for the loan.
More business loan calculators:

Alternative ways to finance your business

If you can’t meet traditional business loan requirements, you might consider these options instead:
  • If you have poor personal credit and lack collateral, invoice factoring and invoice financing both involve the use of unpaid customer invoices to access capital. With factoring, you sell the invoices to a factoring company that then collects the money from your customers. With invoice financing, the unpaid invoices serve as collateral on a cash advance. You still collect payment on the invoices from your customers, and then you pay back the loan. 
  • If your business is newer, personal loans are a good option if your business can’t qualify for traditional financing. Lenders consider your personal credit score and income instead of your business history.
  • If you want a revolving source of capital, business credit cards can be easier to get than a small-business loan. Business credit cards tend to have relatively low credit limits, but you can earn rewards for your spending, such as cash back or travel points.
  • If you don’t need a lot of money, business grants provide free money to startups and operating businesses — either by giving you a lump sum, or reimbursing you for certain expenses. They can be difficult to research and apply for, and grant amounts typically aren’t as high as loans, but it can be worth it if you’re able to get free money for your business, even in small amounts. 

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