Frequently Asked Questions
How do I calculate business loan payments?
Monthly payment = P × [r(1+r)^n] / [(1+r)^n - 1], where P = loan amount, r = monthly interest rate, n = number of payments. This calculator does this automatically.
What interest rate should I expect on a business loan?
Small business loan rates typically range from 6-30% depending on your credit score, business age, and loan type. SBA loans often have lower rates (6-13%). Online lenders typically charge more (10-30%).
How much can I borrow for my business?
Most lenders allow borrowing up to 10-30% of annual revenue. SBA loans go up to $5 million. Microloans typically go up to $50,000 for newer businesses.
Is this business loan calculator free?
Yes, completely free. Compare multiple loan scenarios with no account needed.
How it works
- Enter the amount you wish to borrow.
- Input the interest rate offered by your lender.
- Set the loan term and your preferred payment frequency.
- Instantly see your payment amount, total interest, and an amortization summary.
Tips for best results
- •Always check the 'Total Interest' metric. A lower monthly payment over a longer term often means paying significantly more overall.
- •Use the Compare Scenarios feature to weigh an SBA loan against an online lender.
- •A general rule of thumb: keep your loan payment under 15% of your gross monthly revenue.