Business Loan Calculator
Calculate monthly payments, total interest and true cost for any business loan.
Enter Details
Results
Related Calculators
Frequently Asked Questions
What credit score do I need for a business loan?
Requirements vary by lender and loan type: SBA loans typically require 640-680+ personal credit score. Traditional bank loans 680-720+. Online lenders 550-600+. Some revenue-based lenders focus more on cash flow than credit score. A strong business revenue history (2+ years) and healthy cash flow often matter as much as the score itself.
What types of business loans are available?
Main business loan types: Term loans (lump sum, fixed payments), SBA loans (government-backed, best rates), Business lines of credit (revolving, flexible), Equipment financing (collateral is the equipment), Invoice factoring (advance on receivables), Merchant cash advance (high cost, avoid if possible), and Commercial real estate loans.
How does a business loan affect my personal credit?
Most small business loans require a personal guarantee, meaning your personal credit is on the line. Hard inquiries appear on your personal report. Missed payments are reported personally. Building business credit (Dun and Bradstreet, PAYDEX score) over time allows you to qualify for business-only credit without personal guarantees.
Business loan payments and total interest at 2026 rates
Small business loan rates in 2026 run from about 7% for bank term loans to well qualified borrowers, through 8% to 12% for SBA-backed loans, to 15% to 60% or more for online short-term lenders and merchant cash advances. The term matters as much as the rate: equipment and working capital loans run 1 to 7 years, commercial real estate up to 25.
| Amount | Rate | Term | Monthly payment | Total interest |
|---|---|---|---|---|
| $50,000 | 9% | 5 years | $1,037.92 | $12,275 |
| $100,000 | 11% | 3 years | $3,273.87 | $17,859 |
| $100,000 | 8.5% | 7 years | $1,583.65 | $33,026 |
| $250,000 | 8% | 10 years | $3,033.19 | $113,983 |
| $500,000 | 7.5% | 10 years | $5,935.09 | $212,211 |
Worked example: can the business afford it?
A $100,000 loan at 8.5% over 7 years costs $1,583.65 a month. Lenders want the business's net operating income to cover that payment with room to spare, usually a debt service coverage ratio of 1.25 or more, which here means at least $1,980 a month of cash flow available for debt, or $23,760 a year, after all operating expenses and the owner's pay. A business clearing $1,700 a month would be declined by most banks and pushed toward a more expensive lender.
Short-term loans look cheap and are not
An online lender offering $50,000 with a "factor rate" of 1.25 repaid over 12 months charges $12,500: the same interest as the 5 year bank loan in the table, but over one fifth of the time, an APR of roughly 43%. Daily or weekly repayment schedules also take cash out before the loan has had a chance to generate it. Always convert a factor rate to an APR before comparing, and the APR calculator on this site does that.
What lenders look at
Time in business (two years for most banks, six months for some online lenders), annual revenue (often a $100,000 to $250,000 minimum), the owner's personal credit score (680 and up for the best bank rates), the business credit profile, collateral, and the last two years of tax returns and bank statements. A personal guarantee is standard for small business loans regardless of the business structure, which means the owner's home and savings are at risk if the business cannot pay.
Fees to add to the rate
Origination fees of 1% to 5%, SBA guarantee fees of 2% to 3.75% on larger loans, packaging and closing fees, and prepayment penalties on some term loans. On the $250,000 example, 3% in fees is $7,500 up front, which raises the effective rate by about 0.7 points over 10 years. Ask for the APR and the total repayment amount in writing before signing.