Business Loan Calculator
Calculate business loan payments and determine the true cost including fees
Business Loan Calculator
The Business Loan Calculator calculates the payback amount and the total costs of a business loan. The calculator can also take the fees into account to determine the true annual percentage rate, or APR for the loan. The APR gives borrowers a more accurate assessment of a loan's actual cost.
💼 Loan Details
📊 Result
📚 Understanding Business Loans
Business loans, like the name implies, are loans intended for business purposes. Like other loans, the terms require the borrower to pay back both the principal and the interest. Most business loans will require monthly repayments, though some may call for weekly, daily, or interest-only payments. A select few can require repayment when the loans mature.
Business loans also come in many different forms. The following is a list of common loan options for U.S. businesses:
SBA Loans
Small Business Administration (SBA) loans, or loans federally regulated by the U.S. Small Business Administration, are designed to meet the financing needs of many different business types. Depending on the type of SBA loan, borrowers can use them for various purposes, including:
- Business start-ups
- Acquisitions
- Working capital
- Real estate
- Franchise financing
- Debt refinancing
- Improvements
- Renovations
Business Loan Fees
Like many other types of loans, business loans usually involve fees besides interest. Banks typically charge these fees to cover the costs of verifying the borrower's information, filling out paperwork, and other loan-related expenses. The most common fees are the origination fee and the documentation fee.
The Bottom Line
All these fees can make the actual cost or rate of the loans higher than the interest rate given by the lenders. The calculator above can account for these expenses and compute the loan's actual cost with fees included, allowing borrowers to understand the full implications of taking out such a loan.