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Business loan calculator

Calculate how much you could borrow for your business.

Before applying for a business loan, it’s important to know how much you can afford. Finder’s business loan calculator can help you quickly estimate what your monthly payment will be and your loan’s total cost.

Business loan calculator

See how much you'll pay each month
Your loan
Loan amount
$
Loan terms (in years)
Interest rate
%

Fill out the form and click on “Calculate” to see your estimated monthly payment.

or

Compare
You can expect to pay back $ per month
Based on your loan terms
Principal $
Interest $
Total Cost $

How to use the business loan calculator

Calculating your monthly payment is pretty straightforward. To use the calculator, just enter the loan amount, APR and repayment term length.

Our calculator will return three simple results: your estimated monthly payment, the total amount of interest you can expect to pay and the full cost of repaying your business loan.

After, you can browse our list of lenders to submit an application for preapproval to view your potential rates — without affecting your personal or business credit score.

Important business loan terminology

Here’s a list of terms to be familiar with when comparing loans:

  • Loan amount. The total sum of money borrowed from a lender, after any applicable fees are subtracted. It’s also known as the principal balance.
  • Loan term. How long your business has to repay the loan, in years or months.
  • Interest rate. The cost of borrowing expressed as a percentage of the loan amount. Unlike the APR, the interest rate doesn’t factor in fees.
  • APR. The cost of borrowing expressed as a percentage of the loan amount, including interest rate and fees. Always compare APRs when evaluating loans, as this represents the true cost of borrowing.
  • Loan balance. The amount of your loan principal and interest that still needs to be repaid.
  • Monthly payment. What your business must pay each month toward the loan balance and interest and/or fees.
  • Origination fee. A fee some lenders charge to process your loan application. It’s also known as a closing fee.
  • Annual fee. A flat fee that some lenders charge once a year on certain types of loans.

Types of business loans

Here’s a rundown of the 8 most common types of business loans that can help you fund your business:

  1. Term loan. Term business loans provide a one-time lump sum amount that is repaid in installments with interest and fees. These loans come in short-term and long-term options and are suitable for funding large, one-time expenses.
  2. Small Business Administration (SBA) loan. Backed by the Small Business Administration (SBA), SBA loans offer competitive rates and high loan amounts to businesses that may not qualify for a bank loan. However, these loans typically require collateral and a down payment from 10% to 30%.
  3. Line of credit. A business line of credit (LOC) is ideal for businesses that regularly need access to funds to purchase inventory or to cover unexpected costs. LOCs come with terms from one to two years and may require collateral or be unsecured.
  4. Merchant cash advance. For businesses that rely on credit card sales, merchant cash advances (MCAs) offer quick funds, which are repaid as a percentage of future sales. Best for people with newer businesses or those with low credit scores, APRs may run high with daily or weekly repayments required.
  5. Invoice factoring. Invoice factoring is a financing method that allows a business to sell its accounts receivable (aka, invoices) to a third party, called a factoring company, at a discount. The factoring company takes over the collection of the invoices.
  6. Invoice financing. Invoice financing is a funding method that allows businesses to borrow money against the unpaid invoices due from their customers. The invoices serve as collateral, while the business maintains control over the invoices.
  7. Equipment loan. Equipment financing is used to pay for equipment and vehicles and helps free up your existing credit for other uses. Because it’s collateralized, lenders may offer up to 100% equipment financing at competitive rates.
  8. Commercial real estate loans (CREs). A CRE is a type of business mortgage used to finance the acquisition, development and construction of commercial properties and are generally made to established businesses.

In addition to these financing options, business credit cards can be used to pay for business expenses and offer a range of business-related perks and rewards.

Compare business lenders

Narrow down top business loan providers by minimum amount, maximum amount and more to find the best for your budget and financial goals. Select Compare for up to four products to see their benefits side by side.

Name Product Filter Values Min. Amount Max. Amount Requirements
Lendio business loans
Finder Score: 4.8 / 5: ★★★★★
Lendio business loans
$1,000 to $5,000,000
$1,000 to $5,000,000
Operate business in US or Canada for 6 months or more, have a business bank account, minimum 500 personal credit score, at least $20,000 in monthly revenue
Submit one simple application to potentially get offers from a network of over 75 legit business lenders.
Fundible
Finder Score: 4.9 / 5: ★★★★★
Fundible
Up to $10M
Up to $10M
500+ FICO score, $200,000 annual revenue, 6 months in business, most recent business bank statements
Same day approval
Go to site
Nav business loans
Finder Score: 4.8 / 5: ★★★★★
Nav business loans
$500 to $5 million
$500 to $5 million
550+ credit score
Get connected with personalized matches from over 100 lending options. Plus, sign up for Nav Prime to help boost your business credit score, access banking services and more.
American Express® Business Line of Credit
Finder Score: 4.4 / 5: ★★★★★
American Express® Business Line of Credit
$2,000 to $250,000
$2,000 to $250,000
Minimum FICO score of at least 660 at the time of application, have started your business at least a year ago, and an average monthly revenue of at least $3,000
Access lines of credit for your small business even if you aren't currently an Amex customer.
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How are factor rates calculated?

Factor rates are calculated based on the value of your invoices and the length of time until the invoice is expected to be paid. Most factoring rates are between 1% to 5% of the invoice value, but this varies by the factoring company. As an example, a company with a factoring rate of 1% per 10 days would have a 3% cost for the entire 30-day period.

Ways to reduce the cost of your business loan

Here are 6 ways to keep the cost of your business loan to a minimum:

  1. Choose a shorter loan term. A shorter loan term means there’s less time for interest to add up, reducing your overall cost of borrowing — but your monthly payment will be bigger.
  2. Shop around for the best rate. Different lenders use different criteria when determining your loan amount, rates and terms. Prequalifying with multiple lenders can help you find the best business loan available.
  3. Negotiate with the lender. If you have an existing relationship with a lender or show them more competitive quotes from another lender, they may be willing to lower your interest rate.
  4. Provide collateral. Backing your loan with business assets in addition to a personal guarantee offsets the risk to the lender and could snag you a better deal.
  5. Improve your credit. Because the lowest rates typically go to the best credit borrowers, having a higher credit score can lead to more competitive loan offers.
  6. Pay down your other debts. Having a lower amount of overall debt and a longer history of on-time repayments can also help reduce costs.

Alternative ways to fund your business

If you don’t qualify for a business loan, here are some alternative ways to fund your business:

  • Personal loan. If you don’t qualify for a business loan, some personal loan lenders may allow you to borrow money to fund a business.
  • Bootstrapping. If you just started your business or you’re about to start a new business, you can rely on personal savings or funds from your 401(k) retirement plan to help you kickstart your new venture.
  • Home equity loan. If you have at least 20% equity in your home, you could borrow against your home’s value with a home equity loan or HELOC, but these options come with risks if you can’t make the payments.
  • Credit cards. Utilizing credit cards can be a convenient way to access funds to start a business, but watch out for high rates.
  • Crowdfunding. Crowdfunding offers the ability to raise funds from a large number of people through crowdfunding platforms.
  • Angel investors. Angel investors offer startup money in exchange for ownership equity in your company.
  • Loans from friends and family. As a last resort, you could consider asking your friends or family for a loan, but the terms need to be clear.

Frequently asked questions

What are typical interest rates for business loans?

The average interest rate for a business loan can run from 6% to over 250% APR, depending on the type of loan. Bank loans tend to have the lowest rates, while merchant cash advances often have the highest.

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 three months to 25 years, depending on the loan type and how much you want to borrow. Large SBA and bank term loans have the longest terms — especially for real estate. Working capital loans, like lines of credit and merchant cash advances, tend to have much shorter terms.

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