Business Loan Calculator

Use this calculator to estimate business loan payments, origination fees, admin fees, interest, and total cost. It helps business owners compare financing options and understand how fees affect the real borrowing cost.

What this calculator does

The business loan calculator estimates repayment and borrowing cost.

It uses:

• loan amount
• annual interest rate
• loan term in years
• origination and admin fees

The result shows monthly payment, origination fee, and total cost including estimated admin fees.

How to use the business loan calculator

Enter the loan amount, interest rate, term, origination fee percentage, and monthly admin fee. Use realistic fees from lender quotes where possible.

For business cash planning, compare the payment with expected operating cash flow using the Cash Flow Calculator.

Business Loan Formula

Monthly payment = P x [r(1+r)^n] / [(1+r)^n - 1]

Total cost = total payments + origination fee + admin fees

Example calculation

If:

• Loan amount = 50,000
• Annual interest rate = 9%
• Term = 5 years
• Origination fee = 2%

Then:

Origination fee = 50,000 x 2% = 1,000

The calculator adds this fee and any monthly admin fees to estimate total cost.

What is a business loan?

A business loan is financing used for working capital, expansion, equipment, inventory, or other business needs. It may have different fee structures from personal loans.

Repayment should be reviewed against business cash flow, not just revenue.

Interpreting your result

The monthly payment shows cash-flow pressure, while total cost shows the full financing burden. Fees can materially change the cost of capital.

When to use this calculator

Use this calculator when you want to:

• estimate business loan payments
• include lender fees
• compare financing offers
• plan cash flow

Common mistakes

Common mistakes include:

• ignoring admin fees
• borrowing without cash-flow review
• comparing rate only
• excluding origination fees

FAQs

Does this include all business loan fees?

Only the fees you enter. Lenders may charge additional costs.

Should I compare total cost or payment?

Both matter. Payment affects cash flow, while total cost affects profitability.

Can this help with ROI decisions?

Yes. Compare borrowing cost with expected return using the ROI Calculator.

Is this financial advice?

No. It is for planning purposes only.