Business Loan Calculator

How to Understand Your Business Loan

Securing financing is a common step for growing a business. Whether you're looking at an SBA loan, a traditional bank term loan, or an online lender, understanding the true cost is critical. This calculator helps you see beyond the loan amount and interest rate to the two numbers that matter most: your monthly payment and the total interest you'll pay.

Key Loan Terms

• Principal (Loan Amount): The total amount of money you are borrowing.
• Interest Rate: The percentage the lender charges you for borrowing the money, expressed as an annual rate.
• Loan Term: The length of time you have to pay back the loan. Longer terms mean lower monthly payments but significantly more total interest.
• Amortization: The process of paying off a loan over time with regular, equal payments. Each payment is split between principal (reducing your debt) and interest (the lender's profit).

When evaluating loan offers, don't just look at the monthly payment. Use this calculator to compare the total interest paid for different loan terms and rates. A slightly higher payment over a shorter term can often save you thousands, or even tens of thousands, of dollars in interest.