01
Enter the Loan Amount
Add the amount your business plans to borrow from the lender.
Business and Lending
Business Loan Calculator
Estimate your required monthly payment, total interest, financing fees, payoff time, annual debt service and business cash-flow coverage before applying for funding.
Instant repayment estimate
Cash-flow coverage analysis
Extra payment savings
Business Financing Details
Enter the proposed loan terms, lender fees and available annual business cash flow.
Loan Repayment Estimate
Review the estimated payment, financing cost and cash-flow impact.
Required monthly payment
$2,100.19
Principal and interest before extra payments
Planned monthly payment
$2,300.19
Includes voluntary extra payment
Estimated payoff time
4 years, 6 months
Approximately 6 months saved
Total interest
$23,792.00
Interest saved
$2,219.00
Total lender fees
$2,500.00
Annual scheduled debt service
$25,202.28
Cash-flow coverage ratio
1.59
Total loan payments
$123,792.00
Total financing cost
$26,292.00
Net loan proceeds
$97,500.00
Effective borrowing rate
10.82%
Number of payments
54
First-month interest
$791.67
The entered annual cash flow provides estimated
coverage above 1.25 times scheduled debt service.
Actual loan offers may include variable rates,
prepayment penalties, daily interest, collateral
requirements or repayment schedules that differ
from this estimate.
Business Financing
What Is a Business Loan?
Understand how companies use borrowed funds to support operations, expansion and long-term investment.
A business loan provides a company with capital that is repaid over an agreed period, normally with interest and lender fees. Businesses may use loan proceeds to purchase equipment, hire employees, increase inventory, open a new location or improve working capital.
The required payment depends on the loan amount, interest rate and repayment term. Shorter terms usually create higher monthly payments but may reduce total interest. Longer terms may lower the payment while increasing the overall cost of borrowing.
Lenders may also consider business revenue, available cash flow, time in operation, credit history, collateral and existing debt before approving a financing request.
How It Works
How to Use the Business Loan Calculator
Estimate your financing cost and repayment schedule in four straightforward steps.
02
Set Rate and Term
Enter the annual interest rate and select the expected repayment term.
03
Add Fees and Extra Payments
Include origination fees, other lender costs and any additional amount you plan to pay each month.
04
Review the Results
Compare the payment, interest, payoff period, financing cost and cash-flow coverage estimate.
Loan Measurements
Important Business Loan Metrics
Review the measurements that help explain affordability and the true cost of business financing.
Monthly Payment
The required amount paid each month toward principal and interest under the entered loan terms.
Total Financing Cost
The total estimated interest and lender fees paid in addition to the original loan principal.
Cash-Flow Coverage
This ratio compares available annual business cash flow with annual scheduled loan payments.
Extra Payment Savings
Additional principal payments can shorten the payoff period and reduce the total interest expense.
Repayment Schedule
Business Loan Amortization Preview
Review how the early payments are divided between interest and principal.
| Payment | Payment Amount | Principal | Interest | Remaining Balance |
|---|
Frequently Asked Questions
Business Loan Calculator FAQs
Helpful answers about payments, lender fees, cash flow and business borrowing costs.
A fixed business loan payment is generally calculated
using the loan principal, periodic interest rate and
number of scheduled payments. Each payment includes
interest and a portion of the outstanding principal.
This calculator treats origination and other entered
lender fees as upfront costs. Some lenders deduct fees
from the loan proceeds, while others may finance certain
charges into the loan balance.
Net loan proceeds represent the original loan amount
minus the entered origination fee and other lender fees.
This is an estimate of the amount available to the
business when fees are deducted at funding.
Extra payments are applied to the outstanding balance in
this calculator. They can reduce future interest charges,
shorten the payoff period and lower the total repayment
amount.
The coverage ratio compares annual cash flow available
for debt with annual scheduled loan payments. A ratio
above 1.00 indicates that the entered cash flow exceeds
the estimated debt service.
No. The calculation assumes a fixed annual interest rate
for the entire repayment period. A variable-rate loan
may have payments and total interest that change over
time.
No. It is an estimated annualized borrowing rate based on
the entered fees and projected payments. Official APR or
disclosure calculations may use lender-specific and
regulatory methods.
No. The result is an educational estimate. Actual
approval depends on lender underwriting, credit history,
business performance, collateral, industry risk and
other eligibility requirements.
Important: This business loan calculator
is provided for general informational and planning purposes
only. It does not constitute a financing offer, approval,
financial advice, accounting advice, tax advice or legal
advice. Actual lender terms and costs may differ.