Business Loan Calculator
Estimate the monthly payment, total interest and total repayment on a business loan from its principal, APR and term.
How to Use
- Enter the loan amount (principal) you're considering.
- Enter the annual interest rate (APR) the lender is quoting.
- Enter the loan term and choose whether you're entering it in months or years.
- The result shows an estimated monthly payment, total interest paid over the life of the loan, and the total amount repaid.
Formula
- Monthly rate
- monthly_rate = APR ÷ 100 ÷ 12
- Monthly payment
- payment = principal × monthly_rate ÷ (1 − (1 + monthly_rate)^−months)
- Total repayment
- total_repayment = payment × months
- Total interest
- total_interest = total_repayment − principal
Worked Example
A $100,000 loan at 6% APR over a 5-year (60-month) term.
- Monthly rate: 6 ÷ 100 ÷ 12 = 0.005
- Payment: $100,000 × 0.005 ÷ (1 − 1.005⁻⁶⁰) = $1,933.28
- Total repayment: $1,933.28 × 60 = $115,996.81
- Total interest: $115,996.81 − $100,000 = $15,996.81
Result: Estimated monthly payment: $1,933.28 / Total interest: $15,996.81 / Total repayment: $115,996.81 / Term: 60 months (5 years)
About This Tool
What this tool does
This calculator estimates the level monthly payment for a fixed-rate, fully amortizing loan — the standard structure where every payment is the same amount and the loan is fully paid off at the end of the term — along with the total interest and total amount repaid.
When to use it
Use it to compare loan offers with different rates or terms, or to estimate what monthly payment a loan amount and rate would produce before applying.
What the result means
The monthly payment, total interest and total repayment are all estimates based on the numbers you entered. A real loan's actual terms depend on the lender's specific product, fees, compounding convention and underwriting — always get the lender's official figures before making a decision.
Assumptions & limitations
This tool assumes a fixed interest rate for the full term, monthly compounding, and a level (equal) monthly payment — the most common structure for term loans, but not the only one lenders use. It does not include origination fees, closing costs, prepayment penalties, or any other charges a real loan may carry, and the loan term must convert to a whole number of months. This is a mathematical estimate only — it is not a loan offer, a pre-qualification, or a lending recommendation, and Calcoryn does not provide financial, tax, or legal advice.