A business loan calculator is an important part of determining the best loan for your business. Enter your loan amount, loan term and interest rate to get started. And if you're not sure what rate to expect, browse our list of lenders to submit an application for preapproval — without affecting your personal or business credit score.
Business loan calculator
See how much you'll pay
|Loan terms (in years)|
Our calculator will return three simple results: Your monthly payment, the total amount of interest you can expect to pay and the full cost of repaying your business loan. This can help you compare your options, from large commercial loans to small startup loans.
Important definitions to know
- Loan amount. How much your business plans on borrowing. Also called the loan principal.
- Loan term. How long your business has to repay the loan, in years.
- Interest rate. The percentage of a loan balance a lender charges in interest, over one year.
- APR. The percentage of the loan balance you’d pay in interest and fees over one year.
- Loan balance. The amount of your loan principal and interest you still need to repay.
- Monthly payment. What your business pays each month toward the loan balance and interest.
- Origination fee. A fee lenders charge after you sign your loan documents, which lenders either add to or subtract from your loan balance. It’s also known as a closing fee.
- Annual fee. A flat fee that lenders charge once a year as long as you’re repaying the loan.
How can I reduce the cost of my business loan?
You have a few options to lower the cost of your loan — both in the short and long term.
- Shorten the loan term. A shorter loan term means there’s less time for debt to add up — but it’ll increase your monthly cost.
- Prequalify with other lenders. Different lenders use different criteria when coming up with your loan amount, rates and terms. Prequalifying with a few can help you find a lower-cost loan.
- Improve your credit. Business lenders typically look at personal over business credit scores, so improving your personal credit score can help you qualify for a lower rate.
- Pay off other loans on time. Having a lower amount of overall debt and a longer history of on-time repayments can also help reduce costs.
- Provide collateral. Backing your loan with business assets in addition to a personal guarantee offsets the risk to the lender and can get you a better deal.
Apply for a small business loan today
See what your business might qualify for by selecting your loan amount, annual revenue, time in business and personal credit score.
Comparing your business loan options is a smart move when you’re looking to start a business or expand into new markets. Take the time to learn more about business loans and view our top picks for small businesses before you commit to a lender.
Frequently asked questions
Our answers to some common questions about business loans.
What is the average interest rate for a small business loan?
The average interest rate for a business loan can run from 4% to over 250% APR, depending on the type of loan. Bank loans tend to have the lowest rates, while merchant cash advances are often the most expensive.
Learn what APR to expect for your loan type by reading our guide to business loan rates.
How much can my business borrow?
You can borrow from under $1,000 to over $5 million — though it depends on the type of lender. Online business loans typically run from around $5,000 to $500,000, while banks and SBA lenders offer larger funding amounts.
Individually, how much your business can borrow depends on factors like revenue, how you plan on using the funds and your loan term.
How long do business loans last?
Business loan terms can run from a few months to 25 years, depending on the type of loan and how much you borrow. Large SBA and bank loans tend to have the longest terms — especially for equipment and real estate. Working capital loans often come with much shorter terms.
More guides on Finder
TD Bank home equity review
Choose from several options, but beware of this lender’s fees and poor reviews.
Upgrade Bitcoin Rewards review
A new crypto card from the unique Upgrade bank.
Digit Checking account review
A bank account that intelligently divvies up your money where you need it for a monthly fee.
Small business loan interest rates are low — but will it last?
Business loan interest rates dropped in 2020 and are likely to stay low. Here’s why.
Spectrum Credit Union MySavings Youth review
A youth savings account with a whopping 7% APY on account balances up to $1,000.
M&T Starter Savings account review
A kids savings account with an interest rate that compounds daily but has long hold times for customer service.
Third Federal Savings & Loan home equity review
Get a low rate guarantee, but you won’t know if you’re eligible until you apply.
PenFed Credit Union home equity review
Get a line of credit with low closing costs — but you can’t apply online.
Three ways to earn cryptocurrency that aren’t DeFi
Bear markets are a unique opportunity to grow your portfolio and build a solid foundation for the next bull cycle.
Garden Savings FCU Kids Club Savings account review
A kids’ savings account with a generous interest rate that transitions to a lackluster regular savings account when your child turns 18.
Ask an Expert