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.
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 Business Loan Calculation
Scenario: Loan Amount $50,000 | Rate 9.5% | Term 60 months | Fee 2% | Revenue $500,000
- Origination Fee: $1,000.00
- Monthly Payment: $1,050.09
- Total Interest Paid: $13,005.58
- Interest as % of Loan: 26.01%
- Total Cost (inc. fee): $64,005.58
- First Month Interest: $395.83
- DSCR: 7.94 — Strong
- Payoff Date: March 2031
"In this example, your monthly payment is $1,050.09. Over 5 years, you pay about $13,000 in interest. Your DSCR of 7.94 is very high, indicating your revenue easily covers the loan payments."
Frequently Asked Questions
What is a Debt Service Coverage Ratio (DSCR)?
DSCR is your annual business revenue divided by your annual loan payments. It tells lenders whether your business generates enough income to comfortably cover the loan. Most lenders require a DSCR of at least 1.25, meaning your revenue is 25% higher than your debt payments.
What are typical interest rates for business loans?
In 2026, small business loan rates range from 6% to 15% for conventional bank loans. SBA 7a loans range from 7% to 10%. Alternative lenders can charge much higher rates. Always calculate the true total cost including origination fees.
SBA vs. Conventional Loans?
SBA loans are partially guaranteed by the government, allowing for lower rates and longer terms (up to 25 years). Conventional loans are faster but usually have shorter terms and higher rates. SBA loans require more documentation.
Is business loan interest tax deductible?
Yes, in the US, business loan interest is generally tax deductible as a business expense if used for legitimate purposes. This can significantly reduce the true cost of borrowing. Consult an accountant for your specific case.
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.