UNDERSTANDING THE CALCULATION
How a business loan calculator works
A business loan calculator estimates the cost of borrowing based on the amount borrowed, annual interest rate, and repayment term.
The monthly payment is calculated using the loan balance, interest rate, and number of scheduled payments. Each payment generally contains both principal and interest.
As the loan is repaid, the remaining balance decreases. This changes the amount of interest charged over time and affects how much of each payment goes toward principal.
The calculator also estimates total interest and total repayment. These figures can help you compare different loan amounts, interest rates, and repayment terms.
Actual financing costs can differ from calculator results. Lenders may use different rates, fees, repayment structures, origination charges, prepayment terms, and underwriting requirements.
What your business loan payment means
A monthly payment is only one part of a borrowing decision. The total amount repaid can be substantially higher than the original amount borrowed because of interest and other financing costs.
For a business owner, another important question is whether the payment fits within the company's ongoing cash flow.
That's why this calculator includes a cash-flow check. By entering monthly revenue and operating expenses, you can estimate how much cash remains after the estimated loan payment.