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Business Loan Calculator

Business loan payment calculator.

Model any business loan — term loan, SBA, line of credit, equipment, or working capital. Enter principal, rate, and term to see monthly payment, total interest, and full life-of-loan cost.

Monthly payment$5,560
Total paid$333,591
Total interest$83,591
Number of payments60
How this works: Standard amortization (M = P(r(1+r)^n)/((1+r)^n−1)) treats every payment equally — the early payments are mostly interest, the late payments mostly principal. Excludes origination fees and prepayment penalties. For factor-rate MCAs, use the MCA Calculator instead.
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See real business loan offers at $250,000.

We'll route your inputs to lenders that fund this profile and email the top 2–3 offers. No credit pull.

By submitting you agree to be contacted by Summit.

FAQ

Business loan calculator, answered.

How is a business loan payment calculated?+

Standard amortization formula: M = P × (r(1+r)^n) / ((1+r)^n − 1), where P is principal, r is the monthly rate (annual rate ÷ 12), and n is the term in months. The calculator above runs this math automatically and shows total interest over the life of the loan.

What's a good interest rate for a business loan?+

Below 10% APR is strong (typically SBA, bank, or A-paper online term). 10–18% is normal mid-market online lending. 18–30% reflects B/C credit. Anything above 30% APR (or factor-rate MCAs) is speed-priced, not rate-priced — use only when traditional capital won't close in time.

What's the difference between rate and APR?+

Interest rate is the cost of principal only. APR includes the rate plus origination fees, closing costs, and recurring charges, expressed as an annualized number. Always compare APR-to-APR — a 9% rate with 5% fees can cost more than a 10% rate with no fees.

How long should my business loan term be?+

Match the term to the use of capital. Working capital and inventory: 12–24 months. Equipment: 3–7 years (matching useful life). Real estate / acquisitions: 10–25 years. Longer terms mean lower monthly payments but more total interest.

Can I pay off a business loan early?+

Most term loans allow prepayment, but some charge a fee (typically 1–5% of remaining balance, declining over time) or a 'rule of 78s' early-payoff penalty. SBA loans charge a prepayment penalty only on 15+ year terms paid in years 1–3. Summit confirms prepayment language on every offer.