Free Business Loan Calculator
Calculate monthly payments, total interest, and total cost for a business loan. Uses standard amortization to give you accurate payment estimates.
USD
%
years
Monthly Payment
$2,027.64
Total Amount Paid$121,658.37
Total Interest Paid$21,658.37
Monthly Payment vs Loan Term
How to Calculate Business Loan Payments
Formula
M = P x [r(1+r)^n] / [(1+r)^n - 1]
Where:
This standard amortization formula calculates equal monthly payments that cover both principal and interest over the loan term.
Example Calculation
A $100,000 business loan at 8% annual interest for 5 years.
- 01Monthly rate = 8% / 12 = 0.6667% (0.006667)
- 02Total payments = 5 x 12 = 60
- 03Monthly payment = $100,000 x [0.006667 x (1.006667)^60] / [(1.006667)^60 - 1]
- 04Monthly payment = $2,027.64
- 05Total paid = $2,027.64 x 60 = $121,658.40
- 06Total interest = $121,658.40 - $100,000 = $21,658.40
Frequently Asked Questions
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