Business Finance

Business Loan
Calculator

Calculate monthly payments, true APR with fees, DSCR, balloon payments, and full amortization for any business loan.

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Monthly PMT

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True APR

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DSCR

Loan Amount

Annual Interest Rate

Loan Term

yrs

Compound Frequency

Currency Symbol

Repayment Method

Monthly Amortizing Payments

Fixed equal payments — principal + interest every month

Interest-Only + Balloon

Pay only interest during term, full principal due at end

Hybrid (IO period then amort)

Interest-only period, then amortizing remainder

Balloon Payment at End?

Interest-Only Period

yrs

Origination Fee

Documentation Fee

Other Fees

Annual Net Operating Income (for DSCR)

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Fill in your loan details and click Calculate Loan to see your full business loan analysis.

💰 Cost Breakdown

📊 Annual Principal vs Interest

⚖️ With Fees vs Without Fees

Metric	Without Fees	With Fees (APR)

Understanding Business Loans

A business loan calculator helps entrepreneurs, CFOs, and small business owners understand the true cost of borrowing before signing any agreement. Unlike simple interest calculators, a proper business loan analysis accounts for fees, compound frequency, repayment structure, and whether the loan cash flows work for the business.

Key Business Loan Metrics

Monthly Payment (Amortizing) = P × [r(1+r)^n] / [(1+r)^n − 1] True APR = Solve for r where NPV of (payments) = Loan − Fees DSCR = Annual Net Operating Income / Annual Debt Service

What to Look For

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True APR

Always compare loans by APR, not just stated rate. Fees can add 0.5–2% to the effective annual cost.

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DSCR ≥ 1.25

Most SBA and commercial lenders require DSCR of 1.25+. Below 1.0 means the business cannot service the debt.

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Balloon Caution

Balloon payments can seem attractive (lower monthly cost) but require refinancing or a large cash reserve at maturity.

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Fee Negotiation

Origination fees of 1–3% are standard. Documentation and processing fees are often negotiable, especially for larger loans.

Frequently Asked Questions

What is a good interest rate for a business loan?

Rates vary widely by loan type, lender, and borrower creditworthiness. SBA 7(a) loans typically range from 6–9%. Traditional bank loans for established businesses may be 5–8%. Online lenders and short-term loans can be 10–30%+. Always compare APR across lenders, not just the stated rate.

What is the difference between a business loan and a line of credit?

A business loan provides a lump sum upfront with fixed repayment terms. A line of credit is a revolving facility — you draw as needed and repay, with interest only on the outstanding balance. Loans are better for capital expenditures; lines of credit suit working capital needs.

How is DSCR calculated for a business loan?

DSCR = Net Operating Income / Total Annual Debt Service. For example, if your business generates $100,000 NOI and annual loan payments are $80,000, DSCR = 1.25. Lenders typically require 1.25 minimum, meaning your income covers debt payments with 25% headroom.

When does an interest-only loan make sense?

Interest-only loans reduce cash outflow during a growth phase, allowing businesses to invest capital in operations. They make sense when you expect revenue to grow significantly before the balloon is due, or for real estate where appreciation offsets the balloon risk. Always have a clear refinancing plan.

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