Business Loan Calculator
Estimate monthly payments, total interest and the effective cost of a commercial loan. Supports both monthly and quarterly payment schedules, and includes optional origination fees so you can compare offers realistically.
Enter loan details
Enter loan details and press Calculate loan.
Business loan formulas
Payment per period = P · [ r(1+r)^n ] / [ (1+r)^n − 1 ]
Where r is the rate per period (annual ÷ payments per year ÷ 100) and n is the total number of periods.
The effective APR accounts for the origination fee by solving for the interest rate that makes the net loan proceeds equal to the present value of all payments.
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Frequently asked questions
A one-off charge by the lender for processing the loan, typically 1–3% of the amount borrowed. Because it is deducted from proceeds at closing, it effectively raises your cost of borrowing — which is why the effective APR is higher than the stated interest rate.
Quarterly payments match the cash-flow cycle of many businesses (invoice collections, seasonal sales) and can ease pressure on working capital. Monthly payments reduce total interest because principal is repaid sooner. Choose based on when your business actually has cash.