Business Loan Calculator
Calculate your business loan monthly payment, total interest, and true cost of borrowing — including origination fees and a complete month-by-month amortization schedule.
The Business Loan Calculator is a free online tool designed to help you calculate and analyze calculate your business loan monthly payment, total interest, and true cost of borrowing instantly. Planning details accurately is crucial for making smart personal or financial decisions, and this calculator provides instant clarity with downloadable PDF reports.
This tool is built to benefit entrepreneurs and small business owners calculating payments, debt service costs, and amortization for business loans or SBA loans. By checking debt service coverage ratios (DSCR), you can test loan affordability. By evaluating these key calculations, you can determine exactly how different inputs affect your results and align them with your direct planning requirements.
Before using this tool, make sure you have your details ready, such as your loan amount, annual interest rate, loan term, payment frequency, and annual business income. This ensures the most accurate calculations.
Used to calculate Debt Service Coverage Ratio (DSCR)
How to Use the Business Loan Calculator
- 1
Enter your desired loan amount and the annual interest rate from your lender. US small business loan rates typically range from 6% to 15% and SBA loan rates range from 7% to 10% in 2026.
- 2
Select your loan term. Short-term loans of 12 to 36 months are common for working capital. Long-term SBA loans can extend up to 25 years for real estate or major equipment purchases.
- 3
Enter your origination fee percentage if your lender charges one. This is typically 1% to 5% of the loan amount. Enter your annual business revenue to calculate your Debt Service Coverage Ratio which most lenders require to be at least 1.25.
- 4
Click Calculate to see your full payment breakdown, amortization schedule, and DSCR rating. Download the free PDF report to share with your accountant or lender.
Example Calculation
Scenario: A business owner borrows $100,000 to expand operations, securing an SBA loan at 7.5% annual interest for a 10-year term.
- Input: Loan Amount = $10,0000
- Input: Interest Rate = 7.50%
- Input: Loan Term = 10 Years
- Input: Payment Frequency = Monthly
Result: The monthly payment is $1,187.02. Over the 10-year term, the business will pay $42,442.40 in total interest, bringing the total cost of borrowing to $142,442.40.
Download the PDF report to include in your business plan or loan application. Presenting a professional amortization schedule helps lenders assess your business debt-service capabilities.
Frequently Asked Questions
What are the main types of business loans?
Common business loans include SBA loans (backed by the government), commercial term loans (fixed or variable), business lines of credit (flexible borrowing), and equipment financing.
What is the Debt Service Coverage Ratio (DSCR)?
DSCR is a measure of a business's cash flow available to pay current debt obligations. Lenders calculate it by dividing Net Operating Income by Total Debt Service. A DSCR of 1.25 or higher is typically required.
Is business loan interest tax-deductible?
Yes, in most cases, the interest paid on a business loan is a fully deductible business expense, reducing your business's taxable net income.
What collateral is required for a business loan?
Collateral can include commercial real estate, inventory, equipment, accounts receivable, or personal assets. Unsecured business loans do not require collateral but have higher interest rates.
What is the difference between a term loan and a line of credit?
A term loan provides a lump sum of cash upfront with a fixed repayment schedule. A line of credit allows you to borrow up to a set limit on demand, paying interest only on the funds you actually use.
Can I download my business loan schedule?
Yes, you can generate a clean PDF report containing your monthly payments, total interest costs, and a full amortization schedule to print or save.
Disclaimer: This calculator provides estimates for informational purposes only. TheCalcTool is not a licensed financial legal or tax advisor. Business loan calculations are estimates based on the inputs provided assuming a fixed interest rate and equal monthly payments. Actual loan terms fees and rates vary by lender. DSCR is an estimate and actual lender requirements may differ. Consult a qualified financial professional or business advisor before making any borrowing decisions.