Small Business
Business Loan Calculator
Estimate a business loan's monthly payment, total repaid, and total interest from amount, rate, and term. Educational only — rates are examples, not quotes.
A business loan is judged on one question more than any other: can the business's monthly cash flow comfortably cover the payment, month after month, including slow months? This calculator answers three things from three inputs: the monthly payment, the total amount repaid, and the total interest. Enter the rate your lender actually quoted, not a rate from an article — no rate on this page is a quote.
Enter your numbers above.
Estimates only — not financial advice. See assumptions below.
Worked example
Assumptions (labeled, illustrative): $100,000 loan; illustrative 8% annual fixed rate; 84 months (7 years); no fees; no extra payments.
| Item | Amount |
|---|---|
| Monthly payment | About $1,558.62 |
| Total repaid | About $130,924 |
| Total interest | About $30,924 |
For contrast, a smaller, shorter loan — $50,000 at an illustrative 9% over 60 months — costs about $1,037.92 a month, $62,275 in total, and $12,275 in interest.
How this works
Assumptions
- Standard amortizing-loan payment, fixed rate, monthly payments: Monthly payment = P × [r(1+r)^n ÷ ((1+r)^n − 1)], where P = loan amount, r = annual rate ÷ 12, n = total monthly payments. Total repaid = monthly payment × n. Total interest = total repaid − P.
- If the loan has a variable rate, the formula only describes the payment while the rate stays at the entered value — a rate rise raises the payment.
- Upfront fees are shown separately and added to total cost; they are never folded into the rate and never presented as current without a dated source.
- Extra-payment results come from a month-by-month simulation (interest accrues, then base payment + extra payment reduce the balance).
- Does not estimate approval, the rate you will be offered, or collateral / personal-guarantee requirements. Does not convert the payment into an APR — APR and note rate are not the same number.
- Term is entered in months (84 months = 7 years in the worked example).
- Nothing is stored or sent anywhere; all inputs are user-entered.
How we make money: Unpack Money earns $0 in affiliate revenue and has no approved affiliate programs. Educational only; not lending, tax, or business advice. Loan terms, rates, and fees vary by lender and change over time — get written offers from lenders before deciding.
FAQ
Is the rate in the example what I will pay?
No. It is an illustrative rate chosen to show the math. Your rate depends on credit, collateral, loan purpose, term, and the lender. Only a lender's written offer is a quote.
Does a longer term always help?
It lowers the monthly payment but raises total interest and keeps the business in debt longer. Run both terms in the calculator and compare the total-interest lines before deciding.
What about SBA loans?
SBA loans are made by participating lenders with an SBA guarantee; the SBA does not lend directly in the standard 7(a) program. This page deliberately states no SBA rate cap, maturity, or fee figure, because those figures were not verified against sba.gov in this pass. Confirm current program terms with the SBA and your lender before relying on any SBA figure.
Keep unpacking
How we make money: Unpack Money may receive compensation when you click certain links or apply for products through our site. Compensation may affect where products appear, but it does not determine our editorial evaluations. Learn more