💰 Business Loan Calculator

The monthly payment is calculated using the standard loan formula: M = P × [r(1+r)^n] / [(1+r)^n - 1], where P is the principal amount, r is the monthly interest rate, and n is the number of payments.

The interest rate is the cost of borrowing the principal loan amount. APR (Annual Percentage Rate) includes the interest rate plus additional fees and costs, giving you a more accurate picture of the total cost of the loan.

Yes, this calculator works for SBA loans, traditional bank loans, equipment financing, and other types of business loans. Just enter the loan terms provided by your lender.

Include origination fees, processing fees, underwriting fees, and any other upfront costs. Don't include ongoing fees like monthly maintenance fees, as these aren't typically part of the loan amount.

Longer loan terms result in lower monthly payments but higher total interest costs. Shorter terms mean higher monthly payments but less interest paid over the life of the loan.

A balloon payment is a large, lump-sum payment due at the end of the loan term. It reduces your monthly payments during the loan term but requires a significant payment at maturity.

Most business loans allow prepayment, but some may have prepayment penalties. Check with your lender about their prepayment policy before making extra payments.

The calculations are mathematically accurate based on the inputs provided. However, actual loan terms may vary based on your creditworthiness, business financials, and lender policies.