Business Loan Calculator
- Principal
- Interest
- Origination fee
Borrowing costs 26.6% of the loan amount over 60 months. A fee deducted from the payout means you receive $98,000.00.
How the business loan calculation works
The rate is split into twelve monthly rates
A 9% yearly rate is charged as 0.75% a month on whatever balance is still owed.
The payment is fixed for the whole term
Payment = loan × r ÷ (1 − (1 + r)^−n), where r is the monthly rate and n the number of months. Early payments are mostly interest, later ones mostly principal.
Total interest is all payments minus the loan
60 payments of $2,075.84 come to about $124,550. Take off the $100,000 borrowed and $24,550.13 is interest (the exact figure uses the unrounded payment).
Fees count as part of the cost
An origination fee is usually taken from the payout. A 2% fee on $100,000 means $2,000 less in your account, but you still repay the full $100,000.
Worked example. A $100,000 loan at 9% over 5 years costs $2,075.84 a month. Over 60 payments you pay $24,550.13 in interest, plus a $2,000 origination fee, so the loan costs $26,550.13 and you pay back $126,550.13 in total.
Business Loan FAQ
Can I use this as a commercial loan calculator?
Yes, for any commercial or company term loan with fixed monthly payments. Enter the loan amount, interest rate and term your lender quotes, plus any origination fee. It works for LLCs, corporations and sole proprietors. For a property loan with a balloon payment, use the commercial mortgage calculator.
How do I calculate a business loan payment?
Divide the yearly rate by 12 to get the monthly rate r, then use payment = loan × r ÷ (1 − (1 + r)^−months). $100,000 at 9% over 60 months is $2,075.84 a month.
What is the interest rate on a business loan?
Lenders set it based on your credit, collateral, loan type and term, so use the rate on your actual offer. One public benchmark is the SBA 7(a) cap: variable rates may be at most the prime rate plus 3% (loans over $350,000) to 6.5% (loans of $50,000 or less). With the bank prime rate at 7.00% in October 2026 (Federal Reserve), those caps are 10% and 13.5%.
Is the origination fee included in the monthly payment?
Usually not. Most lenders deduct it from the money you receive, so the payment is based on the full loan amount while you get less cash. If your lender adds it to the balance instead, add the fee to the loan amount.
What is the monthly payment on a $100,000 business loan?
At 9% it is $3,179.97 a month over 3 years ($14,479.04 interest), $2,075.84 over 5 years ($24,550.13 interest) and $1,266.76 over 10 years ($52,010.93 interest). A longer term lowers the payment but more than doubles the interest.
How much will a $50,000 business loan cost per month?
At 9% over 5 years it is $1,037.92 a month and $12,275.07 in total interest. Change the amount above to see your own figures.
Does paying the loan off early save interest?
Yes, on an amortized loan interest is charged only on the remaining balance. Check your agreement for a prepayment penalty first.
Sources: SBA: 7(a) terms, conditions and eligibility (maximum interest rates) · Federal Reserve H.15: Selected interest rates (bank prime loan rate)