Free Business Loan Calculator

Enter your loan amount, interest rate, and term to see your monthly payment, total interest, and full repayment schedule. Free, and no signup needed.

Monthly Payment$0
Total Interest$0
Total Repayment$0
MonthPaymentPrincipalInterestBalance

Once your loan is funded, track repayments and every other expense alongside your invoices.

Start Invoicing Free

Why use a business loan calculator?

Before you sign for a business loan, it helps to know exactly what it will cost you every month and over the life of the loan. This calculator turns a lender's headline interest rate into real numbers: your monthly payment, the total interest you will pay, and what the loan actually costs from start to finish.

How is a business loan payment calculated?

Most business loans use a standard amortization formula, the same math behind mortgages and car loans. Each monthly payment is the same size, but the mix shifts over time: early payments are mostly interest, later payments are mostly principal.

M = P x r / [1 - (1 + r)^-n] M = monthly payment P = loan amount (principal) r = monthly interest rate (annual rate / 12) n = total number of monthly payments (years x 12)

The calculator runs this formula for you. Enter your loan amount, annual interest rate, and term in years, and it returns your monthly payment, total interest, and total repayment instantly.

How does this calculator work?

Type in the amount you want to borrow, the annual interest rate your lender quotes, and how many years you will take to repay it. If your lender charges an origination fee, a common upfront charge on business loans, enter that as a percentage and the calculator will show both the fee amount and the amount you will actually receive after it is deducted. Click "Show amortization schedule" to see a full month-by-month breakdown of principal, interest, and remaining balance.

What is an origination fee?

An origination fee is a one-time charge some lenders deduct from a loan before disbursing it, typically to cover underwriting and processing costs. It is usually quoted as a percentage of the loan amount. If a $50,000 loan carries a 3% origination fee, $1,500 is deducted before the funds reach you, but you still repay the full $50,000 principal plus interest. This calculator shows both figures separately so the gap is not a surprise.

Fixed rate vs variable rate loans

A fixed rate stays the same for the life of the loan, so your monthly payment never changes, which is what this calculator assumes. A variable rate is tied to a benchmark and can rise or fall over time, which means your actual payment could differ from this estimate as the rate moves. If you are comparing a variable-rate offer, use the current rate to get a snapshot, and recheck the numbers if the rate changes.

Tips for comparing business loan offers

This calculator provides estimates for planning purposes. Actual loan terms, fees, and payment amounts are set by your lender and may vary.

Loan funded? Keep the rest of your finances just as clear.

Track loan repayments alongside every invoice, expense, and payment with a free Billbooks account.

Try Billbooks Free

Free to start · No credit card needed

FAQs

Your loan amount, the annual interest rate your lender quotes, and the loan term in years. If your lender charges an origination fee, you can enter that too as a percentage, it is optional and defaults to zero.

The calculator uses the standard loan amortization formula, the same one used for mortgages and car loans, to work out a fixed monthly payment that fully repays the loan amount plus interest over your chosen term.

It is a one-time charge some lenders deduct from your loan before disbursing it. You still repay the full loan amount plus interest, but you receive less upfront. The calculator shows the fee amount and your net proceeds separately so you know what to expect.

It gives you a snapshot using the current rate. If your loan has a variable rate, your actual payment can change if the rate moves, so treat the result as an estimate at today's rate rather than a fixed number for the full term.

A month-by-month breakdown of every payment, showing how much goes toward interest and how much goes toward principal, plus your remaining balance after each payment. Click "Show amortization schedule" to see it for your numbers.

Yes. It is completely free, with no signup and no credit card. Enter your numbers and see your results right away.

Explore our other FREE tools

Free Invoice Generator Create and download professional invoices online. Free Quote Generator Build and send polished quotes in minutes. Free Receipt Generator Create and download receipts online. SKU Generator Generate consistent SKU codes for your products. Profit Margin Calculator Work out your margin, markup, and profit. Burn Rate Calculator See your monthly burn and cash runway. Freelance Budget Calculator Plan your freelance income and expenses. Registered Agent vs Virtual Address 3-question quiz: registered agent, virtual address, or both?