Business Loan Calculator
The Business Loan Calculator calculates the payback amount and the total costs of a business loan. The calculator can also take the fees into account to determine the true annual percentage rate, or APR for the loan. The APR gives borrowers a more accurate assessment of a loan's actual cost.
Modify the values and click the Calculate button to use
Loan Details
Fees
Result
| Total of 60 loan payments | $12,748.23 |
| Interest | $2,748.23 |
| Interest + fee | $3,998.23 |
| Real rate (APR) | 15.931% |
| Period | Payment | Principal | Interest | Fees | Balance |
|---|
Business Loan Calculator – See Your Real Payments, Fees & APR
If you’re considering financing for inventory, equipment, or cash flow, the first question is simple: what will this loan really cost me? Our free Business Loan Calculator helps you see the whole picture monthly payment, total interest, total fees, and the true annual percentage rate (APR). With this, you can compare offers and avoid surprises.
What is a Business Loan Calculator?
A Business Loan Calculator estimates your repayment schedule and the full cost of a loan. It goes beyond the base interest rate by allowing you to include origination fees, processing charges, and other upfront costs. When fees are added to the calculation, the tool can show a more accurate metric—your APR (Annual Percentage Rate). APR reflects both interest and fees over a year, giving you a better apples-to-apples comparison between lenders.
- Payment Amount: What you’ll pay each month (or weekly/bi-weekly depending on your term).
- Total Interest: How much interest you’ll pay over the life of the loan.
- Total Cost: Principal + interest + fees.
- APR: The loan’s true annual cost, including fees.
Try the calculator now and return to this guide for help interpreting the results.
Why APR Matters (More Than Interest Rate)
Two loans can have the same interest rate but very different costs because of fees. APR captures this difference. If a lender advertises an 11% rate but charges a 4% origination fee on a 12-month term, the APR will be higher than 11%—often by several percentage points. Comparing loans by APR (instead of rate alone) helps you spot the truly cheaper option.
Common Fees That Change Your True Cost
Not all lenders charge the same fees. The most common are:
- Origination Fee: A percentage of the loan amount, often 1%–6%.
- Application/Processing Fee: Flat fee for underwriting and paperwork.
- Documentation/Packaging Fee: Sometimes charged by brokers.
- Prepayment Penalty: A fee for paying off the loan early (not all loans have this).
Tip: Ask for a fee list in writing and plug those numbers into the calculator to see the real APR.
How to Use the Business Loan Calculator (Step-by-Step)
- Open the Business Loan Calculator.
- Enter Loan Amount (the money you’ll receive).
- Enter the Interest Rate (APR if provided, or nominal rate).
- Choose the Term (months/years) and payment frequency (monthly is common).
- Add Fees (origination %, fixed fees, etc.).
- Click Calculate to view:
- Estimated monthly payment
- Total interest + fees
- True APR (with fees)
- Amortization summary
Example: Monthly Payment, Total Cost & APR
Let’s say you borrow $50,000 for 36 months at a 10% interest rate, with a 3% origination fee ($1,500) and a $200 processing fee. After entering these numbers:
- Estimated Monthly Payment: ≈ $1,613
- Total Interest: ≈ $7,068
- Total Fees: $1,700
- Total Cost of Loan: ≈ $58,768
- Estimated APR (incl. fees): Higher than the base 10% (because fees are included)
Numbers will vary based on exact timing and compounding, but this shows how fees push the APR above the simple interest rate.
Compare Two Business Loans (Side-by-Side Table)
Use this table format to compare two offers quickly. Replace the numbers with your quotes and you’ll instantly see which is cheaper after fees.
| Item | Loan A | Loan B |
|---|---|---|
| Loan Amount | $50,000 | $50,000 |
| Interest Rate (Nominal) | 9.5% | 8.9% |
| Origination Fee | 3% ($1,500) | 5% ($2,500) |
| Other Fees (Flat) | $0 | $250 |
| Term | 36 months | 36 months |
| Estimated Monthly Payment | $1,604 | $1,589 |
| Total Interest | $7,734 | $7,204 |
| Total Fees | $1,500 | $2,750 |
| Total Cost (Principal + Interest + Fees) | $59,234 | $59,954 |
| Estimated APR (incl. fees) | ≈ 10.7%–11.1% | ≈ 11.3%–11.8% |
Even though Loan B has a lower interest rate, its fees make the total cost higher and the APR worse. This is why comparing by APR (and total cost) is so important.
Tips to Lower Your Business Loan Cost
- Improve your credit: Better credit can reduce both rate and fees.
- Shorten the term (if cash flow allows): You’ll pay less total interest.
- Negotiate fees: Ask lenders to lower or waive origination or processing fees.
- Compare 3–5 offers: Use the calculator with each offer to find the best APR.
- Avoid prepayment penalties: If you might pay early, pick a loan without penalties.
Frequently Asked Questions
What’s the difference between interest rate and APR?
The interest rate is the cost of borrowing money, not including fees. APR includes interest and most fees, giving a truer picture of the loan’s cost per year.
Do all lenders charge origination fees?
No. Some lenders charge 0%–6% origination. Always ask and include fees in the calculator to compare total cost and APR.
Will a shorter term save me money?
Usually yes. Your monthly payment is higher, but total interest paid is lower. Check your cash flow first.
How accurate are calculator results?
They’re estimates based on the inputs you provide. Exact results depend on the lender’s amortization schedule and fee policies. Use it to compare options consistently.
Can I use the calculator for weekly or bi-weekly payments?
Yes—enter the frequency your lender uses to get a closer estimate of payment amounts and totals.
More Free Money Tools
Planning to finance inventory or consolidate debt? These free tools from Money Matrix Guide can help you save money and compare options:
- Credit Card Interest Calculator – See how much interest you’re really paying.
- Credit Card Payoff Calculator – Build a debt-free date with custom payoff plans.
- Balance Transfer Savings Calculator – Estimate savings from a 0% intro APR offer.
- Rewards & Cashback Calculator – Pick the best card for your spending.
- Credit Card Comparison Tool – Compare fees, APRs, and perks side by side.
We also recommend PDF Tools Guru for free PDF converters, calculators, and productivity apps.
Final Thoughts
Don’t choose a loan by interest rate alone. Use the Business Loan Calculator to include fees, reveal the true APR, and compare total cost. A few minutes of planning today can save thousands over the life of your loan—and help you borrow with confidence.
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