Free Business Loan Calculator
Before you sign for financing, it pays to know exactly what a loan will cost. The BizFin247 Business Loan Calculator turns three simple inputs — loan amount, interest rate, and term — into the numbers that actually matter: your fixed monthly payment, the total interest you will pay over the life of the loan, and the total amount you will pay back. It also builds a complete amortization schedule so you can see how every payment is split between principal and interest.
It is free, requires no sign-up, and runs entirely in your browser — nothing you type is sent to a server. Use it to compare offers, budget cash flow, or sanity-check what a lender quotes you.
How to Calculate Business Loan Payments
Most business term loans are “amortizing,” meaning you pay the same fixed amount each month and the loan is fully paid off by the end of the term. The monthly payment is calculated with the standard amortization formula:
M = P × [ r(1 + r)n ] / [ (1 + r)n − 1 ]
- M = monthly payment
- P = principal (the amount you borrow)
- r = monthly interest rate (annual rate ÷ 12 ÷ 100)
- n = total number of monthly payments (years × 12)
For example, a $50,000 loan at 9% annual interest over 5 years has a monthly rate of 0.75% (9 ÷ 12) and 60 payments. Plugging those into the formula gives a monthly payment of about $1,038, roughly $12,280 in total interest, and a total payback near $62,280. The calculator above does this math instantly and updates as you type — no spreadsheet required.
When the interest rate is 0% (for example, a promotional lender offer), the payment is simply the principal divided by the number of months, and total interest is zero. The calculator handles that case automatically.
What Is an Amortization Schedule?
An amortization schedule is a month-by-month (or year-by-year) table that shows how each payment is applied. Even though your payment stays the same, its makeup changes over time: early payments are mostly interest, while later payments are mostly principal.
Each row of the schedule shows four things:
- Payment — the fixed amount due that period.
- Principal — the portion that reduces what you owe.
- Interest — the lender’s charge for that period.
- Remaining balance — what you still owe after the payment.
Reading the schedule helps you understand why paying a little extra early on saves so much: every extra dollar toward principal removes future interest. Toggle the schedule between a yearly summary and a full monthly breakdown, then print or download it as a clean PDF to keep with your records or share with a co-owner or accountant.
When to Use This Calculator
- Comparing two or more loan offers with different rates or terms.
- Checking whether a monthly payment fits your projected cash flow.
- Deciding between a shorter term (less interest, higher payment) and a longer term (more interest, lower payment).
- Estimating the true cost of equipment, expansion, or working-capital financing.
Pair it with the ROI and cash-flow tools linked below to decide whether the investment the loan funds will actually pay for itself.
Borrow with Confidence
A loan is only a good deal if the numbers work. By seeing your monthly payment, total interest, and full amortization schedule up front, you can negotiate better, budget accurately, and avoid surprises. Run a few scenarios above, save the schedule, and choose the financing that keeps your business healthy.
This calculator provides estimates for planning purposes only and does not include lender fees, origination charges, or compounding methods that may vary by lender. Always confirm final figures with your lender.