Business Loan Calculator

A business loan calculator helps small business owners estimate monthly payments, total interest costs, and amortization schedules before applying for financing. Understanding these figures is crucial for making informed decisions about taking on debt and ensuring your business can manage the repayment obligations.

Whether you're considering an SBA loan, term loan, or equipment financing, this calculator will help you visualize the financial impact of different loan scenarios on your business cash flow.

Calculate Your Business Loan

How to Use This Calculator

  1. Loan Amount: Enter the total amount you plan to borrow.
  2. Interest Rate: Enter the annual interest rate offered by your lender.
  3. Loan Term: Enter the number of years you'll take to repay the loan.
  4. Payment Frequency: Select how often you'll make payments.
  5. Click "Calculate" to see your payment amount, total interest, and amortization schedule.

Understanding Business Loan Terms

When applying for a business loan, it's important to understand these key terms:

  • Principal: The original loan amount borrowed.
  • Interest Rate: The percentage charged by the lender for borrowing the money.
  • Term: The length of time to repay the loan.
  • Amortization: The process of paying off debt with regular payments that cover both principal and interest.
  • Collateral: Assets pledged to secure the loan that the lender can seize if you default.
Mark Cuban Image from Wikimedia Commons, CC BY-SA 3.0

"The best investment you can make is paying off debt. If you have credit card debt with 18% interest, paying off that debt is like putting money in a savings account that pays you 18% interest."

Mark Cuban

Before becoming a billionaire investor and Shark Tank star, Cuban lived in a cramped apartment where he slept on the floor. His first business, MicroSolutions, was launched with just $500. He sold it seven years later for $6 million. Cuban attributes his success to understanding debt leverage—knowing when borrowing accelerates growth and when it becomes a burden.

Business Loan Readiness Checklist

  • Prepare detailed business plan with financial projections
  • Review and improve your business credit score
  • Organize financial statements (balance sheet, income statement, cash flow)
  • Calculate your debt service coverage ratio (DSCR)
  • Identify collateral you can offer to secure better rates
  • Research multiple lenders to compare terms and rates
  • Determine exactly how much you need to borrow (not too much, not too little)