Business Loan Calculator
Calculate your monthly business loan payments and see exactly how your loan breaks down over time.
Quick loan amounts:
Enter your business loan details above and click Calculate to see your payment schedule and total costs.
Principal vs Interest Breakdown
Loan Details
Annual Interest Expense (Tax Planning)
Business loan interest is typically tax-deductible. Here's your year-by-year breakdown:
Understanding Business Loans
Types of Business Loans
- Term Loans: Fixed amount repaid over time
- SBA Loans: Government-backed, lower rates
- Equipment Financing: For business equipment
- Lines of Credit: Flexible borrowing
Typical Business Loan Rates
- SBA Loans: 6% - 13% APR
- Bank Term Loans: 7% - 15% APR
- Online Lenders: 10% - 25% APR
- Equipment Loans: 6% - 18% APR
Factors Affecting Your Rate
- Business credit score and history
- Time in business (2+ years preferred)
- Annual revenue and cash flow
- Collateral availability
- Industry and business plan
Tax Benefits
Interest paid on business loans is generally tax-deductible as a business expense. This effectively reduces the true cost of borrowing for your business.
Consult a tax professional for your specific situation.
Frequently Asked Questions
What is a typical business loan interest rate?
Business loan interest rates typically range from 6% to 25% depending on the lender, loan type, and your business's creditworthiness. SBA loans often have lower rates (6-13%), while online lenders may charge higher rates (10-25%).
How long can I take to repay a business loan?
Business loan terms typically range from 1 to 25 years. Short-term loans (1-3 years) are common for working capital, while equipment loans and SBA loans may extend to 10-25 years.
Is business loan interest tax-deductible?
Yes, interest paid on business loans is generally tax-deductible as a business expense. This can significantly reduce the effective cost of borrowing. Consult a tax professional for your specific situation.
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