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Small Business & Commercial Loan Calculator

Use our Small Business & Commercial Loan Calculator to easily understand your loan payments and manage your business finances better. It's quick, user-friendly, and helps you make smart decisions about borrowing and repaying loans.

Business Loan Calculator

Loan amount


Term in months


Interest rate per year



Monthly payment


Total paid


Interest paid

Month Balance Interest Principal
1 $10000.00 $37.50 $816.29
2 $9183.71 $34.44 $819.35
3 $8364.37 $31.37 $822.42
4 $7541.95 $28.28 $825.50
5 $6716.45 $25.19 $828.60
6 $5887.85 $22.08 $831.71
7 $5056.14 $18.96 $834.82
8 $4221.32 $15.83 $837.96
9 $3383.36 $12.69 $841.10
10 $2542.26 $9.53 $844.25
11 $1698.01 $6.37 $847.42
12 $850.60 $3.19 $850.60

A small business or commercial loan could be handy if you want to expand your business. Before applying for one, consider the total cost of the loan with interest and how long it’ll take to repay.

How to Use a Business Loan Calculator

Our business loan calculators require some basic information to estimate your monthly payments:

  • Loan amount: This refers to the total amount borrowed before interest.
  • Loan terms (months or years): The term indicates how many payments you’ll make on the loan. Payments are usually monthly. So, if your loan term is for 12 months, or one year, you’ll make 12 payments.
  • Annual Interest Rate: Your monthly payments will include the principal balance and the interest rate. Most business loans express interest as APR. To figure out your monthly interest rate, take the APR and divide it by 12.

Business Loan Qualification Estimate

  1. Financial Health: Ensure your financial statements (balance sheet, income statement, cash flow statements) are in order.
  2. Credit Score: Higher personal and business credit scores can lead to larger loans with better terms.
  3. Debt Service Coverage Ratio (DSCR): A DSCR of 1.25 or higher. It's calculated by dividing your annual net operating income by your total annual debt payments.
  4. Loan-to-Value (LTV) Ratio: If using collateral, lenders will loan a percentage of its value.
  5. Industry and Business Plan: A solid business plan can improve your chances, especially in riskier industries.
  6. Online Loan Calculators: Use a business loan calculator for a rough estimate based on your revenue, credit score, and other details.
  7. Consult with Lenders/Advisors: Different lenders have varying criteria; a direct consultation can provide a clearer picture.

Common Types of Business Loans

  • Term Loans: Provide a lump sum of cash upfront, repaid with interest over a set period.
  • SBA Loans: Loans backed by the Small Business Administration, offering favorable terms and lower rates, but with stringent qualifying criteria.
  • Business Lines of Credit: Offer flexible access to funds up to a certain limit, similar to a credit card, and you only pay interest on the amount used.
  • Equipment Loans: Specifically designed to finance the purchase of equipment, where the equipment itself often serves as collateral.
  • Merchant Cash Advances: Provide funds in exchange for a portion of future credit card sales, typically used for short-term financing needs.
  • Commercial Real Estate Loans: Used to purchase, develop, or renovate commercial property.
  • Microloans: Smaller loans, often aimed at startups or small businesses needing a minor capital boost.
  • Invoice Financing: Advances a portion of your unpaid invoices, providing immediate cash flow.

Business Loan Examples

Example A Example A Example B Example C
Principal Amount $50,000 $100,000 $500,000
Yearly Interest (APR) 6.00% 6.00% 6.00%
Number of Payments (5-year loan) 60 60 60
Estimated Monthly Payment $966.64 $1,933.28 $9,666.40
Total Payment + Interest $57,988.40 $115,996.81 $579,984.05

Check the amortization schedule to see your monthly payment breakdown and how much goes towards the principal vs. interest. Just be aware that the figures are estimates. The exact figures may vary based on the loan and lender’s terms or other fees.

Alternatives to Fund Your Business

There are several alternative funding options you can consider:

  1. Bootstrapping: Using personal savings, or revenue from the business, to fund growth. This approach avoids debt but may limit growth speed.
  2. Angel Investors: Wealthy individuals who provide capital for a business start-up, usually in exchange for convertible debt or ownership equity.
  3. Venture Capital: Professional groups that manage pooled funds from many investors to invest in high-growth startups, often taking an equity stake.
  4. Crowdfunding: Raising small amounts of money from many people, typically via the Internet. Platforms like Kickstarter and Indiegogo are popular for this.
  5. Business Incubators & Accelerators: Programs that provide support in the form of workspace, mentorship, and sometimes funding in exchange for equity.
  6. Government Grants: Funds government bodies provide for specific types of businesses or projects, usually not requiring repayment.
  7. Peer-to-Peer Lending: Borrowing money from individuals through online platforms that match lenders with borrowers, often at competitive interest rates.
  8. Trade Credit: Arranging to buy goods or services from suppliers with payment deferred to a later date, effectively creating a credit line from suppliers.
  9. Home Equity Line of Credit (HELOC): If you own a home, you might borrow against the equity in your property to fund your business.
  10. Friends and Family: Borrowing money from friends or family members. While potentially more flexible, this can carry personal risks.

How to Reduce Small Business Loan Costs

Reducing small business loan costs can significantly impact your financial health and profitability. Here are some strategies to consider:

  • Improve Your Credit Score: A higher credit score can help secure loans with lower interest rates. Pay your bills on time, reduce debt levels, and check your credit reports regularly to correct errors.
  • Shop Around: Don't settle for the first loan offer you receive. Compare multiple lenders' rates, terms, and fees to ensure you get the best deal.
  • Negotiate Terms: Don't be afraid to negotiate with lenders. You might get a lower interest rate, reduced fees, or more favorable repayment terms.
  • Choose the Right Loan Type: Different loan types have different costs. For example, SBA loans often have lower rates than conventional business loans. Understand each loan type's pros and cons and choose the most cost-effective for your needs.
  • Make a Larger Down Payment: If possible, make a larger down payment on your loan. This reduces the loan amount, lowering your interest costs and possibly improving your loan terms.
  • Pay Off the Loan Early: If your loan terms allow, pay off your loan early to save on interest costs. However, be aware of any prepayment penalties that might apply.
  • Refinance High-Cost Loans: If you have high-interest loans, consider refinancing them into a loan with a lower interest rate. However, consider refinancing costs and ensure the overall savings justify the switch.
  • Maintain a Strong Business Plan: A solid business plan can improve your bargaining position with lenders, reducing their risk and leading to better loan terms.
  • Monitor Your Financial Health: Regularly review your business's financial situation. Efficient management of your finances can improve your creditworthiness and position you to secure loans with better terms in the future.
  • Use Automated Payments: Some lenders discount interest rates if you set up automated loan payments from your bank account.