Business Loan Calculator

How to Use This Business Loan Calculator

• Loan Amount — the principal you are borrowing.
• Annual Interest Rate — the loan\'s annual rate (APR).
• Loan Term — the repayment period in years.
• Extra Monthly Payment — optional; see how paying extra cuts your interest and payoff time.

Click Show Amortization Schedule for a month-by-month breakdown, or Download CSV to open it in Excel or Google Sheets.

What Is a Business Loan & Amortization?

A business loan is financing you repay over time in fixed installments. Each payment is split between interest (the cost of borrowing) and principal (paying down the balance). Early in the loan, most of each payment goes to interest; later, more goes to principal. This process is called amortization, and the schedule shows exactly how it plays out month by month.

Understanding amortization matters because the headline interest rate does not tell you the full cost. A lower monthly payment from a longer term can mean dramatically more total interest. Seeing the full schedule — and testing extra payments — lets you make a financing decision based on true total cost, not just the monthly number a lender quotes.

Loan Payment Formula

Example Calculation

A $100,000 loan at 9% over 5 years (60 months):

• Monthly payment ≈ $2,076
• Total interest ≈ $24,560
• Total cost = $100,000 + $24,560 ≈ $124,560

Adding even a small extra monthly payment can cut both the total interest and the payoff time — try it above.

Business Loan Repayment Schedule & Early Payoff

Your business loan repayment schedule is the month-by-month amortization table this calculator generates: each row shows the payment, how much went to interest, how much to principal, and the remaining balance. Early payments are interest-heavy; the split flips as the balance falls. Two uses worth knowing:

• Loan payoff amount: the remaining balance column at any month is (approximately) what it costs to pay the loan off then — the exact payoff quote from your lender adds accrued interest since your last payment and any prepayment fee.
• Early payoff savings: paying extra shortens the schedule from the end, wiping out the highest-interest months first. On a $100,000 loan at 9% over 5 years, an extra $200/month clears the loan roughly 7 months early and saves about $2,300 in interest. Check your agreement for prepayment penalties before committing extra cash — and check the cash can be spared at all with our cash flow forecast calculator.

Common Mistakes to Avoid

• Focusing only on the monthly payment. A longer term lowers the payment but raises total interest, often by a lot.
• Ignoring fees. Origination fees and closing costs raise the true cost beyond the interest rate.
• Confusing APR and interest rate. APR includes some fees and is the better comparison number.
• Borrowing more than cash flow supports. Check the payment against your real monthly cash flow before signing.
• Overlooking prepayment penalties. Some loans charge you for paying early — confirm before planning extra payments.

Business Loans for Small Business & Startups

Taking on debt is one of the highest-stakes financial decisions a small business makes. The right loan funds growth that more than covers its cost; the wrong one strains cash flow for years. The deciding question is not just "can we afford the payment?" but "will what we do with this money earn more than the loan costs?" — which ties directly to ROI and cash flow planning.

A fractional CFO helps you answer that: modeling the loan against your cash flow, comparing financing options, and making sure the debt actually advances the business. If you are weighing a loan or line of credit, a short call can save you from an expensive mistake — or confirm a smart move.

Frequently Asked Questions

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