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Business Loan Calculator

Find a business loan's payment, total interest, and real APR after origination, documentation, and other fees — including weekly, interest-only, and balloon payback.

ExampleSample values — edit any field to see your result.

$
%

Nominal annual rate. Origination, documentation, and other fees are folded into real APR, not this rate.

How often interest compounds. Monthly (APR) is the usual business-loan quote; annually is an APY.

years
months

How often you repay. Interest only keeps the principal until maturity; in the end is a single balloon.

%

Percent of the loan amount, typically 1–6%. Treated as an upfront fee (it raises real APR).

$

Paperwork / processing fee paid upfront.

$

Application, admin, or other upfront fees.

Results update as you type.

Payback

$212.47

Estimated result

Frequency
Every Month
Number of payments
60
Total of loan payments
$12,748.23
Interest
$2,748.23
Interest + fee
$3,998.23
Real rate (APR)
15.933%

Principal, interest & fee

Principal 71%, Interest 20%, Fee 9%
  • Principal71%
  • Interest20%
  • Fee9%

Amortization schedule

PeriodInterestPrincipalBalance
Year 1$926.96$1,622.68$8,377.32
Year 2$757.05$1,792.60$6,584.72
Year 3$569.34$1,980.31$4,604.42
Year 4$361.98$2,187.67$2,416.75
Year 5$132.90$2,416.75$0.00
Payback$212.47

Estimate the real cost of a business or SBA loan. Enter the amount, rate, compounding, term, and pay-back schedule for the periodic payment (or an interest-only / balloon alternative), total interest, and the fee-inclusive APR after origination, documentation, and other upfront fees.

Formula

For amortized payback, the contractual payment uses the rate per period r from the compounding and pay-back maps (n = (years + months / 12) × payments per year; daily uses a 365.25-day year):

discrete:     r = (1 + i/m)^(m/ppy) − 1
continuous:   r = exp(i/ppy) − 1
payment     = P × r / (1 − (1 + r)^(−n))

Totals are round(payment × n, 2). Fees are upfront:

fees = P × origination% + documentation + other

Real APR is the IRR of the (cent-rounded) payment series against P − fees, then round(12 × ((1 + r_irr)^(ppy/12) − 1) × 100, 3).

Interest-only charges P × r_month each month and the principal at maturity. In the end is a single balloon P × (1 + EAR)^years.

Rank offers by real APR, not the flyer rate. The default $10,000 at 10% for five years is a $212.47 monthly payment — but 5% origination plus a $750 documentation fee pushes real APR to 15.931%.

Typical business loan fees

FeeHow it is enteredTypical range
OriginationPercent of the loan1–6%
DocumentationDollarsFlat processing charge
OtherDollarsApplication, admin, similar

Examples

$10,000 at 10% for 5 years with 5% + $750 fees

The default: $212.47 every month, $12,748.23 over 60 payments, $2,748.23 in interest, $3,998.23 interest plus fees, and a real APR of 15.931%. The payment itself does not change if you drop the fees — only APR and total cost do.

Interest only on the same loan

You pay $83.33 of interest each month and $10,000 at maturity. Total interest is $5,000; with the same fees, interest plus fees is $6,250 and real APR is 13.448%. Payments are lower now; the balloon still has to be refinanced or paid from cash.

Single balloon at maturity

Nothing is paid until the loan matures. Five years of monthly compounding turns $10,000 into $16,453.09 due in one payment ($6,453.09 of interest). With the default fees, real APR is 12.696%.

Frequently asked questions

How is a business loan payment calculated?
For a regular installment loan the payment amortizes the face amount at the rate per pay-back period. Monthly compounding with monthly payback is the usual quote: r = rate / 12, n = years × 12 + extra months, and payment = P × r ÷ (1 − (1 + r)^−n). Changing compounding or pay-back (weekly, quarterly, annually) converts the same nominal rate to a matching periodic rate before that formula runs.
Why is real APR higher than the interest rate?
The note rate prices only the principal. Origination, documentation, and other fees are paid upfront, so you receive less than the face amount while still making the same payments. Real APR is the internal rate of return of those payments against net proceeds, annualized — the number that makes two offers comparable.
What is an origination fee versus a documentation fee?
Origination is charged for processing and approving the application, usually 1–6% of the loan, and is entered here as a percent. A documentation fee is a flat dollar charge for paperwork. Other fees cover application, admin, or similar upfront costs. All three reduce what you actually receive and raise real APR; they do not change the contractual payment.
What do Interest Only and In the End mean?
Interest only charges the monthly interest on the full principal for the term, then the principal is due at maturity — lower payments now, a balloon later. In the end is a deferred loan: nothing is paid until maturity, when principal plus compounded interest come due as one balloon. Most term loans use regular amortized payback (monthly is the default).
How do SBA loans differ from conventional business loans?
SBA 7(a), microloan, CDC/504, and disaster loans are made by banks and other lenders but are partially guaranteed by the U.S. Small Business Administration, which can mean lower rates and longer terms in exchange for extra paperwork and guarantee fees. Conventional bank loans have no government guarantee, often shorter terms, and a faster process. This calculator works for either — enter the amount, rate, term, and fees from the offer.

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