Business Loan Calculator
Calculate your monthly business loan payments and see exactly how your loan breaks down over time with full amortization schedules and tax-deductible interest tracking.
Key Takeaways
- Business loan rates range from 6-13% for SBA loans to 10-25% for online lenders
- Interest paid on business loans is typically tax-deductible as a business expense
- Loan terms vary from 1-25 years depending on loan type and purpose
- A 680+ credit score is typically needed for the best rates and SBA loan eligibility
- Shorter loan terms mean higher monthly payments but significantly less total interest paid over the loan's life
Enter your business loan details above and click Calculate to see your payment schedule and total costs.
Loan Projections
Principal vs Interest Breakdown
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 Interest 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
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%).
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.
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.
The SBA offers several loan programs: SBA 7(a) loans are the most common, offering up to $5 million for general business purposes. SBA 504 loans provide up to $5.5 million for major fixed assets. SBA Microloans offer up to $50,000 for small startup costs. SBA Express loans provide faster approval (36 hours) for amounts up to $500,000.
Credit requirements vary by lender and loan type. SBA loans typically require a personal credit score of 680+ and strong business financials. Traditional bank loans often require 700+ credit scores. Online lenders may approve scores as low as 500-600 but charge higher rates.
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