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Business Loan Calculator


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years months


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Results

Payback every month:—
60 payments:—
Interest:—
Interest + Fee:—
Real rate (APR):—

Understanding the Calculator Inputs

Compounding Frequency

How often interest is added to the principal balance. 'Daily' compounding (common in MCA loans) increases the total cost more than 'Monthly' compounding.

Pay Back Frequency

The schedule on which you make payments. Some business loans require weekly or daily draws, which can affect your cash flow management.

Origination Fee

An upfront percentage (often 1%–5%) charged by the lender to process the loan. This is deducted from the loan amount you actually receive.

Real Rate (APR)

This is the effective cost of the loan. It combines the Interest Rate, Compounding effects, and Fees into a single percentage for easy comparison.

How to Use the Business Loan Calculator

Understanding the true cost of business financing is critical. Our Business Loan Calculator helps you look beyond the advertised interest rate to see the real impact of fees and compounding.

1. Input Loan Details

Enter your Loan Amount (Principal), Interest Rate, and Term (Years/Months).

2. Add Fees for Accurate APR

Most commercial loans include hidden costs. To calculate the Real APR (Annual Percentage Rate), input your Origination Fee (usually a %) and any Documentation fees. A 6% loan can easily become a 9% APR loan once fees are included.

Frequently Asked Questions

What is the difference between Interest Rate and APR?
The Interest Rate is simply the cost of borrowing the principal amount. The APR (Annual Percentage Rate) is the total cost of the loan, including the interest rate PLUS origination fees, closing costs, and documentation fees. The APR is always higher and provides a more accurate picture of the loan's cost.
What is a loan origination fee?
An origination fee is an upfront charge by the lender for processing a new loan application. It is typically between 1% and 5% of the total loan amount and is deducted from the loan proceeds before they are deposited into your account.
How does compounding frequency affect my loan?
Compounding frequency determines how often interest is calculated on your balance. Daily compounding results in higher total interest payments than monthly compounding. This calculator allows you to adjust the compounding frequency to see the difference in total cost.
Does this calculator support amortization?
This tool calculates the summary data including total interest, total cost, monthly payments, and effective APR based on a standard amortization schedule.

Disclaimer:

This tool is for estimation only. Actual results depend on lender terms, compounding, and additional fees.