Calculate business loan monthly payments, total cost and break-even revenue. Enter loan amount, rate and term with optional origination fees to see your complete repayment picture.
Enter the loan amount, annual interest rate, loan term and origination fee. Add monthly revenue to see the loan payment as a percentage of business income.
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Business loan monthly payments use standard amortisation: Monthly Payment = Principal x (Monthly Rate x (1 + Monthly Rate)^Months) / ((1 + Monthly Rate)^Months - 1). The origination fee is either deducted upfront from the disbursed amount or added to the loan balance. This calculator shows both the monthly payment and the total cost including fees, so you can accurately compare loan offers from different lenders.
Common business loan types include: term loans (fixed repayment schedule, suitable for large purchases or expansion), SBA loans (government-backed, lower rates, more accessible for smaller businesses), business lines of credit (revolving, flexible for cash flow management), equipment financing (secured by the equipment purchased), invoice financing (advance against outstanding invoices), and merchant cash advances (advance against future card sales — very high effective rates, avoid if possible).
Business loan rates vary widely: SBA 7(a) loans: 11.5-15% (prime + 2.75-4.5%); conventional bank term loans: 6-13% for established businesses with strong credit; online lenders: 10-30%+ for easier qualification; equipment loans: 5-10%; lines of credit: 8-25%. The rate depends on business age, revenue, credit score (business and personal), industry risk, collateral and loan purpose. Businesses under 2 years old typically face higher rates.
Typical business loan documentation includes: 2-3 years of business tax returns, 2-3 years of personal tax returns (for sole proprietors or majority owners), 3-6 months of business bank statements, profit and loss statement and balance sheet (last 2 years and year-to-date), business plan (especially for startups or large amounts), list of business debts and assets, business licence and incorporation documents, and accounts receivable and payable ageing reports.
DSCR = Net Operating Income / Total Debt Service (annual loan payments). Lenders use DSCR to assess whether a business generates enough income to cover loan payments. A DSCR of 1.25 means the business earns 25% more than needed to service its debt — most lenders require a minimum of 1.25-1.35. A DSCR below 1.0 means the business cannot service its debt from current income, making loan approval very difficult.
Business credit cards offer flexibility and rewards but carry high interest rates (typically 16-26% APR) if balances are carried. They are best for short-term expenses that will be paid off monthly. Business term loans offer lower rates for larger, longer-term investments in equipment, inventory, expansion or working capital. For amounts over $10,000 that cannot be paid off within 3-6 months, a term loan is almost always cheaper than credit card debt.
SBA (Small Business Administration) loans are partially guaranteed by the US government, reducing lender risk and enabling lower rates and longer terms. The most common is the SBA 7(a) loan (up to $5 million, for general business purposes). Requirements typically include: 2+ years in business, positive cash flow, good credit (680+ personal score), US-based for-profit business, and owner equity investment. SBA loans take longer to process (30-90 days) but offer the best rates for qualified small businesses.
Secured business loans require collateral (business assets, equipment, real estate or a personal guarantee) that the lender can seize if you default. They typically offer lower rates and higher loan amounts. Unsecured business loans require no collateral but rely heavily on credit score and cash flow — they carry higher interest rates and lower loan limits. Most SBA loans and bank loans for significant amounts require a personal guarantee, making the owner personally liable even for business loans.
