Business Loan Interest Calculator
How much will a business loan actually cost? This calculator shows your monthly payment, total interest, origination fees, and the effective APR — not just the stated rate.
Business Loan Interest Calculator
Calculate monthly payments, total interest, and true cost of your business loan
Disclaimer: Uses standard amortization formula (PMT). Monthly payment assumes fixed-rate loan with equal payments. APR is simplified: total cost / principal / years. Actual APR may differ due to compounding frequency, closing costs, and fees. Does not include potential prepayment penalties or variable rate adjustments.
Frequently Asked Questions
How do I calculate the total cost of a business loan?+
Total cost = (Monthly payment × Number of payments) − Loan amount + Origination fees. Example: $100,000 at 8% for 5 years: monthly payment = $2,028. Total payments = $121,664. Plus $2,000 origination fee. Total cost = $23,664. That's the real cost of borrowing.
What is the difference between interest rate and APR?+
Interest rate is just the annual cost of borrowing. APR includes origination fees, closing costs, and other fees — giving you the true cost. A 7% rate with 3% origination fees is actually ~8.5% APR. Always compare APRs, not just rates.
Should I choose a short or long loan term?+
Short term (1-3 years): higher payments but less total interest. Long term (5-7 years): lower payments but more interest. Choose based on: cash flow (can you handle higher payments?) and purpose (short-term bridge vs long-term investment). Always pay off high-interest loans fastest.
How do I calculate the total cost of a business loan?
Total cost = (Monthly payment × Number of payments) − Loan amount + Origination fees. Example: $100,000 at 8% for 5 years: monthly payment = $2,028. Total payments = $121,664. Plus $2,000 origination fee. Total cost = $23,664. That's the real cost of borrowing.