The Business Loan Calculator works out the payment, total interest and real APR of a business loan, including origination, documentation and other fees.
| Payment | $212.47 |
| Total of 60 payments | $12,748.23 |
| Total interest | $2,748.23 |
| Total fees | $1,250.00 |
| Amount received | $8,750.00 |
| Real APR (including fees) | 15.933% |
Businesses borrow to buy equipment, stock and property, to cover seasonal cash gaps or to grow. Lenders include banks, credit unions, the U.S. Small Business Administration (through partner lenders) and online lenders. Rates and fees vary widely depending on the business's age, revenue, credit and collateral.
Many business loans charge an origination fee (often 1–6% of the loan), documentation and other fees, usually deducted from the money you receive. The calculator shows the real APR: the rate at which the money you actually receive would be repaid by your payments. It is always higher than the quoted rate when there are fees.
Worked example (defaults): $10,000 at 10% for 5 years paid monthly is $212.47 a month. With a 5% origination fee and a $750 documentation fee you receive only $8,750, which pushes the real APR above 15%.
Term loans have fixed payments over a set period. SBA 7(a) and 504 loans have government guarantees and long terms. Lines of credit let you borrow and repay as needed. Equipment financing uses the equipment as collateral. Merchant cash advances and invoice factoring are fast but very expensive.
What credit score do I need? Banks usually want 680+, online lenders less.
Is business loan interest deductible? Generally yes, as a business expense.
Should I give a personal guarantee? Most small-business lenders require one; understand that you are personally liable.