Business Financing
Business Loan Calculator
Estimate monthly payment, total interest, and a year-by-year tax-planning view.
Estimated Monthly Payment
Principal & Interest
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 cost of the loan is $121,658. 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.
Enter loan details above to see your payment breakdown chart.
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 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, effectively reducing the true cost of borrowing.
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.
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.
- Federal Reserve: Survey of Terms of Business Lending — Quarterly survey of commercial loan rates and terms.
- CFPB: Small Business Lending — Consumer Financial Protection Bureau resources for small business borrowers.
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