Business Loan Calculator

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How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
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If you’re looking to apply for a small business loan but aren’t sure your budget can handle the repayments, our business loan calculator can help estimate your monthly bill. You can also use our affordability calculator to see how much funding your business can potentially get.

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How to use this calculator

The LendingTree business loan payments calculator can help you review your loan’s potential costs, including principal and interest. To get started, enter the following info:

1. Loan amount

Decide how much you want to borrow based on your company’s needs and financial goals. Small business loans typically range from $500 to $5 million or more. Borrowing on the lower end can ensure you’re able to keep up with the repayment schedule. 

2. Estimated interest rate

Average business loan rates can range from 3.52% to 16.5% or higher, with some alternative lending options having APRs in the triple digits. While lenders tend to advertise their most competitive rates, your final rate will vary based on the loan type, lender and your qualifications. If you haven’t submitted an official application yet, you can estimate your interest rate based on the lender’s range and your credit score.

Note that our calculator asks for the interest rate versus APR (annual percentage rate). APR includes the interest rate plus any additional fees the lender charges. If a lender lists factor rates instead of traditional interest, you’ll need to convert factor rates before inputting into our calculator. 

3. Loan term

Your loan term indicates how long you have to repay your small business loan. While a longer term can give your budget some breathing room, a shorter term will generally save the most in the long run. 

Try entering various term lengths into our calculator to see which monthly payment option best fits your financial situation.

4. View results

After entering the required info, our business loan calculator will break down your principal amount, total interest charges and your monthly payment. You’ll also see the full amortization schedule – the amount you’ll pay towards the principal and interest each month.

For example, if you want to borrow $75,000 over seven years with a 8% rate, your monthly payment will be $1,168.97 and $23,193.15 in total interest. 

5. Compare lenders

As you apply to various lenders, you can use our calculator to compare offers to find the best deal that fits your business budget and goals. 

Why use a business loan calculator?

A business loan calculator can help estimate the total cost of business financing before you commit to the loan. With this information, you can adjust your loan amount or term length to pick an option that feels manageable.

Business loan affordability calculator

Not sure how much you can borrow for your business? Our small business loan calculator can estimate your borrowing potential before you apply for small business financing.

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Understand how much you can borrow

Typically, the loan amount you’re approved for is based on the business information you provide.

Here are some factors that could affect your borrowing limitations:

  • Business start date and annual revenue: Lenders look at your business history and annual gross revenue to determine how much debt you can handle. Your business may need to operate for at least two years with a minimum of $100,000 in annual revenue to qualify, although some lenders offer startup financing.
  • Credit scores: The higher your personal and business credit scores, the more likely you’ll get approved for larger loan amounts, lower interest rates and more flexible terms. If you have limited credit, you could borrow less with a bad credit business loan or find ways to boost your score before applying.
  • Type of business: Some industries involve more risk, such as starting a restaurant. Your lender may require you to pledge collateral with a secured business loan to minimize the risk on their end.

After reviewing your initial application, a lender may have additional business loan requirements, like a detailed business plan, financial projections or a personal guarantee.

What to consider when shopping for a business loan

It’s a good idea to decide what monthly business loan payment you can afford before applying for funding. Borrowing within your means can help you stick to your business budget and avoid defaulting on the loan.

Here are some factors to consider when looking for a small business loan that fits your needs:

Business loan amount

Bank business loans tend to offer larger amounts than alternative business lenders. That said, it’s typically easier to qualify for an online loan than a traditional bank loan.

The type of business loan also impacts how much you can borrow. For instance, microloans typically offer up to $50,000 in financing, while SBA loans can go as high as $5.5 million.

Interest rate

Small business loan interest rates affect the overall cost of business loans and vary from lender to lender. Some common types of interest on business loans include:

  • Annual percentage rate (APR): Compounding annual interest that includes fees, such as loan origination fees and closing costs.
  • Annual interest rate (AIR): Compounding annual interest that doesn’t include any loan fees.
  • Factor rate: Decimal figure that shows the total cost of financing when multiplied by the original loan amount. A factor rate doesn’t reflect any loan fees.

Since you often won’t know your final interest rate until you apply, it’s worth applying to multiple lenders at once to find the best rate. You have 14 days to “rate shop” without any further impact to your credit score.

When taking out a business loan, make sure you understand the difference between variable versus fixed interest — while variable rates might seem attractive, fixed rates can provide the most predictability over the loan’s duration. This information should be outlined in your final business loan agreement.

Looking at the loan’s amortization schedule can help estimate how long it will take to repay your loan based on a specific interest rate and monthly payment.

Types of business loan fees

If your small business loan interest rate is written as an APR, it will include all costs of the loan, including additional fees. Otherwise, you may need to pay some or all of the following fees separately:

  • Origination fee: The cost of processing and approving your loan application.
  • Service or processing fees: The expense of billing and managing your account.
  • Prepayment penalty: While paying off your debt early can be a good thing, your lender might charge a business loan prepayment penalty.
  • Late payment fee: Charged when you make a payment past the due date.

Ask your lender about all anticipated fees to ensure you’re getting the best business loan offer.

Loan term

Your loan term is how long you have to repay your debt. It can span a few months to 25 years, depending on the type of loan and lender.

Online loans typically have the shortest terms, with some lenders requiring you to repay your debt within three to six months. These loans usually come with higher interest rates than bank loans, which could increase the amount of your monthly payments. But terms can vary quite a bit from one lender to the next, and there are online lenders with terms of five, or even seven, years.

You can also find traditional bank loans with terms that last as long as seven years, and you may be able to find even longer-term loans. Meanwhile, SBA loans can have terms of up to 25 years.

Thing to know

Watch out for daily or weekly repayment schedules when borrowing short-term business loans. Some lenders collect automatic, recurring payments on a daily or weekly basis until the loan is paid off. While this may result in lower payments overall, you would need to budget for regular withdrawals from your business bank account.

 

Where to find business loans

Once you have an idea of how much you can borrow and the size of loan payments you can afford, it’s time to get a business loan that meets your needs.

As mentioned earlier, there are several types of business loans available that may offer various loan terms and repayment schedules. You could start researching the three broad categories of business loans before narrowing down your choice.

Online loans

Online business loans typically have more lenient borrower requirements, making them an ideal choice if your credit profile isn’t up to par. In addition, most alternative lenders have speedy funding times, with options for same-day financing.

However, online loans usually come with higher interest rates, lower borrowing amounts and less favorable repayment terms than traditional bank loans.

SBA loans

Backed by the Small Business Administration (SBA), SBA loans are issued through banks and other financial institutions. Since the SBA guarantee reduces lender risk, borrowers denied by traditional banks might have better luck securing funds with an SBA-approved lender.

Individual lenders may set their own interest rates, but the SBA caps rates to keep loan costs low. You can use our SBA loan calculator to estimate how much your monthly payments will cost.

Here are the different types of SBA loans you can choose from:

  • SBA 7(a) loan: The SBA 7(a) loan is a primary source of funding for small business owners. Loans go up to $5 million, with terms ranging from 10 to 25 years.
  • SBA 504 loan: The SBA 504 loan combines funds from the SBA and Certified Development Companies (CDCs) to provide small businesses with the funds they need to purchase fixed assets, such as commercial real estate or machinery.
  • Microloans: As the name suggests, SBA microloans are smaller loans, with amounts capped at $50,000. Funded by nonprofit lenders and other community-based organizations, terms can range from five months to ten years.
  • Disaster loans: These loans are provided directly from the SBA and are available to business owners in areas where a federally declared disaster occurred.

Bank loans

Getting a bank business loan can be more challenging since most lenders require a solid credit score and at least two years of operation under your belt, along with minimum revenue requirements. However, you might qualify for favorable rates and terms if you have a long-term relationship with the bank.

Just note that it can often take weeks for a traditional bank to approve and fund your application.

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Alternative financing options to fund your business

If your business doesn’t meet traditional or online business loan requirements, here are some other funding options to consider.

Small business grants

Small business grants are offered by federal, state or local governments, as well as private corporations or foundations. Grants don’t need to be repaid, helping you access the funds you need for various business expenses.

Some grants are awarded to certain types of business owners, such as business grants for women and minority small business grants. However, business grants tend to be highly competitive and often involve a lengthy application process.

Merchant cash advances

Merchant cash advances (MCAs) are a type of short-term business financing that allows you to leverage a portion of your future credit card sales in exchange for a cash advance. These lenders typically charge a factor rate, which tends to cost more than other types of business financing.

Invoice factoring

Invoice factoring allows you to sell unpaid customer invoices to a factoring company in exchange for a cash advance. Typically, you can get 70% to 90% of the value of your outstanding invoices.

The factoring fee can be flat or variable and may increase the longer the invoice is unpaid. While convenient, invoice factoring tends to be an expensive way to borrow funds for your business.

Personal loans

If you can’t get approval for a business loan, you can consider a personal loan for business purposes.

Lenders tend to be more lenient when approving personal loans versus business loans. You will still need a good to excellent credit score and reliable income, but you won’t need to provide your business qualifications or history.

However, you may pay higher interest rates while putting your personal credit on the line. Plus, unlike with business loans, you can’t claim personal loan interest as a business tax deduction.

Business credit cards

Business credit cards tend to have less stringent requirements than a business loan, allowing you to fund small expenses as needed. Many credit cards also have great perks, such as sign-up bonuses and business travel rewards programs. However, they tend to have lower credit limits and higher APR rates compared to traditional business financing.

While you can use personal credit cards for business purchases, keeping your expenses separate will make your business tax preparation easier. Plus, you can claim the interest on business credit cards as a business expense.

Crowdfunding for business

Crowdfunding could be a viable funding solution for your small business. Crowdfunding sites allow you to create a campaign to help raise donations for your business. But it’s important to choose the right crowdfunding platform — most sites take a percentage of your donations, which can quickly chip away at your capital.

Frequently asked questions

The length of the loan term depends on the type of business loan you choose. Long-term business loans can have loan terms lasting up to ten years. Short-term business loans typically last anywhere from three to 24 months.

Long-term business loans typically follow a monthly repayment schedule, but short-term business loans may require weekly or even daily payments.

A business line of credit is a form of flexible funding where you can borrow up to your credit limit as often as needed. You only pay interest on the withdrawn amounts, although some lenders charge additional maintenance fees.

The level of difficulty in getting a business loan will depend on a number of factors, including the amount you’re seeking to borrow, the lender you choose and your business’s qualifications.

According to the Federal Reserve’s 2024 Report on Employer Firms, which is based on findings from the 2023 Small Business Credit Survey, 51% of surveyed applicants received all the financing they sought while an additional 28% were approved for some financing.