Business Financing
Business Loan Calculator
Estimate monthly payment, total interest, and a year-by-year tax-planning view.
Estimated Monthly Payment
Principal & Interest
Assumptions applied
For a $100,000 business loan at 8% interest over 5 years, your monthly payment is $2,028. You’ll pay $21,658 in interest — the total of payments is $121,658. That is principal plus interest at the note rate you entered — it does not include origination, packaging or SBA guaranty fees, so your fee-inclusive APR and true cost of credit will both be higher. Interest paid is generally tax-deductible as a business expense.
Typical scenario — enter your details above for your personalized estimate.
Not a Loan Offer or Commitment: This calculator provides estimates based on the information you enter. Actual loan terms, rates, and payments will vary based on your creditworthiness, lender requirements, and current market conditions. This is not a commitment to lend, pre-qualification, or pre-approval. Rate information shown is for illustration only and may not reflect rates currently available to you. Contact a lender directly for personalized rate quotes and official loan disclosures.
Principal vs Interest Breakdown
Doughnut shows the share of total cost going to interestEnter loan details above to see your payment breakdown chart.
Annual Interest Expense by Loan Year
Gross interest paid in each 12-month period from your first payment — loan year 1 is payments 1–12, not a calendar yearThese are gross interest amounts grouped by loan year — each row covers 12 payments counted from your first payment date, so unless your loan happens to start in January these periods straddle two calendar years. Do not copy these figures onto a tax return. For the calendar-year totals your books and your return use, see the amortization schedule below — every row there lists its calendar month, and for loan terms long enough to span multiple years the schedule groups those rows by calendar year for you.
Business loan interest is generally deductible, but this calculator does not compute your tax saving — that depends on your marginal rate, your entity type, and whether the section 163(j) business-interest limitation applies. Ask your tax professional what these figures are worth to you.
Amortization Schedule
Amortization Schedule
Understanding Business Loans
Types of Business Loans
- Term Loans: Fixed amount repaid over time
- SBA Loans: Government-backed, lower rates
- Equipment Financing: Secured by the equipment
- Lines of Credit: Revolving, flexible borrowing
Typical Interest Rates
- SBA 7(a) Loans: capped at 9.75–14.75% for September 2026, by loan size and fixed or variable rate
- Bank Term Loans: median 6.8% fixed and 7.1% variable on new small-business term loans, Q2 2026
- Online Lenders: we found no public survey that publishes their rates; 60% of online-lender borrowers in the Fed’s 2025 survey said costs ran higher than expected
- Equipment Loans: we found no public survey that reports a separate rate range
These are note rates, the same kind of rate the calculator above takes; a lender’s quoted APR adds fees and will sit higher. The SBA caps follow the prime rate in effect on the first business day of the month (6.75% on September 1, 2026); prime rose to 7.00% on September 17, 2026. Sources: SBA 7(a) maximum rates (13 CFR 120.214 and the SBA’s September 2026 fixed-rate table); Kansas City Fed Small Business Lending Survey, Q2 2026 (published September 24, 2026); Federal Reserve 2026 Report on Employer Firms. Checked September 28, 2026.
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, effectively reducing the true cost of borrowing.
Consult a tax professional for your specific situation.
Frequently Asked Questions
Rates depend on the lender, the loan type and your business’s credit. For September 2026 the SBA caps 7(a) rates at 9.75% to 14.75%, depending on loan size and whether the rate is fixed or variable. Banks’ median rate on new small-business term loans was 6.8% fixed and 7.1% variable in Q2 2026 (Kansas City Fed Small Business Lending Survey). We found no public survey that publishes online-lender rates; in the Federal Reserve’s 2025 Small Business Credit Survey, 60% of online-lender borrowers said their borrowing costs were higher than expected.
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 million for major fixed assets ($5.5 million for small manufacturers and certain energy projects). 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.
Related Guides
Related Loan Calculators
Other loan calculators for personal and consumer borrowing needs.
Official Sources
- SBA: Small Business Loans — SBA-backed loan programs, eligibility, and lender match.
- SBA: 7(a) Loan Terms and Maximum Rates — Variable-rate caps by loan size; maximum fixed rates are published monthly on SBA’s FTA wiki.
- Federal Reserve Bank of Kansas City: Small Business Lending Survey — Quarterly survey of bank rates on new small-business loans; Q2 2026 data published September 24, 2026.
- Federal Reserve: 2026 Report on Employer Firms — Findings from the 2025 Small Business Credit Survey, including borrowers’ experience with online lenders.
- SBA: Lender Match — Consumer Financial Protection Bureau resources for small business borrowers.
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