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Business Loan Calculator: Estimate Payments With Your Interest Rate

Use this business loan calculator to estimate your monthly payments and interest based on the loan term and APR.
Written by Steve Nicastro, Tina Orem
Edited by Ryan Lane
Last updated on October 13, 2022

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NerdWallet’s business loan calculator can help you understand how repaying a small-business loan might affect your cash flow. The best small-business loan for you is typically the one with the most ideal terms — so you’ll want to compare interest rates, time to fund and repayment size, among other factors.
Enter your loan amount, repayment term and annual interest rate in the calculator below to estimate a business loan’s monthly payment, total interest costs and the total amount repaid. Then adjust the loan characteristics to see how changes can affect repayment and figure out the right fit for your business.

Business loan calculator

Understanding your business loan calculator results

Monthly payment: This is the fixed amount you’ll repay each month. It includes principal, interest and fees.
Total payments: This is the sum of all the payments to make on the loan, which includes the amount you borrowed, plus interest and fees.
Total interest paid: The total interest paid represents what the lender is charging you for the loan. If you repay the loan early, you may be able to save on interest.
APR: This number represents the true annual cost of the loan and makes it easier to do an apples-to-apples comparison between products. Some lenders do not provide APR and instead give a general interest rate that does not include any fees. APR for business loans depends on your credit score and your business’s finances, including annual revenue and time in business.
Understand interest rates:

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

Terms, rates and qualifications vary by lender, but here are key features of different kinds of small-business loans.

Bank loans

Lots of different types of lenders exist for small businesses, but banks are the most well known. To qualify for a bank loan, small-business owners typically 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, banks require collateral or a personal guarantee.

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, it takes time to get an SBA loan, and borrowers must clear several hurdles to qualify. Small-business owners 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.

Online business loans

Online lenders usually have less stringent qualification requirements than banks and the SBA, making these loans more accessible to more business owners. They can usually fund loans much more quickly than banks — as soon as the same or next day. On the other hand, they also tend to charge higher interest rates and have shorter terms.

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 the 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 business loan requirements, 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 small businesses 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