Business Loan Calculator
Price a term loan, SBA loan or online lender offer on equal terms: monthly, biweekly or weekly payments, fees deducted up front, and factor rates converted to a real APR.
Annual percentage rate
The cost of your credit as a yearly rate.
Finance charge
The dollar amount the credit will cost you.
Amount financed
The amount of credit provided to you.
Total of payments
What you'll have paid after all scheduled payments.
Payment schedule: 36 monthly payments of $2,455.40.
How the balance falls
Explain my numbers in plain English
Sends only the numbers shown above (and your question) to an AI model via Vercel AI Gateway. Nothing is stored. It's a plain-language read, not financial advice.
Comparing business financing offers
Business lenders don't all have to quote an APR the way consumer lenders do under the Truth in Lending Act, so offers arrive in different shapes: an interest rate here, a factor rate and daily debits there. Convert every offer to APR and total repaid before comparing.
Factor rates are the big trap. Because the fee is fixed no matter how quickly you repay, a short term makes the effective rate climb: a 1.2 factor over 6 months with weekly debits is well above 60% APR. Try it in factor mode.
Questions people ask
How are business loan payments calculated?
Term loans from banks, SBA lenders and online lenders usually amortize like consumer loans. Some online lenders collect weekly or daily; the calculator converts the rate to the payment frequency you choose.
What is a factor rate?
Some short-term lenders and merchant cash advances quote a factor rate such as 1.25 instead of an interest rate: you repay the advance times the factor. A 1.25 factor on $50,000 over 9 months means repaying $62,500, which works out to an APR far above 25%. Use "Factor rate" mode to see it.
What fees come with a business loan?
Origination or packaging fees (often 1–6%), SBA guarantee fees on SBA loans, and sometimes closing costs. They reduce what you receive and raise the APR, shown above.
How long are SBA 7(a) loans?
The SBA sets maximum terms of up to 10 years for working capital and equipment, and up to 25 years for real estate. Rates are capped relative to the prime rate.