How to Use This Business Loan Calculator
Enter your desired loan amount, interest rate, term length, and origination fee percentage to calculate your monthly payment and total cost of borrowing. The effective annual rate shows the true cost of the loan after accounting for upfront fees. Click "Show Amortization Schedule" for a month-by-month payment breakdown.
Types of Business Loans
Common commercial loan types include SBA loans (government-backed with competitive rates), term loans (fixed amounts repaid over a set period), equipment financing (secured by the purchased equipment), and lines of credit (flexible borrowing up to a limit). Each has different rate ranges, terms, and qualification requirements.
Understanding Origination Fees
Most business loans charge an origination fee (typically 1-5% of the loan amount) deducted from proceeds at closing. This means you receive less than the stated loan amount but repay the full amount plus interest. The effective annual rate accounts for this, giving you the true cost of borrowing.
Tips for Getting the Best Rate
Strengthen your application by maintaining strong business credit, providing detailed financial statements, and showing consistent revenue. Compare offers from multiple lenders including banks, credit unions, and online lenders. Consider the total cost of the loan—not just the monthly payment—when evaluating options.