Business Loan Calculator
A business loan calculator shows the monthly repayment on financing for working capital, equipment, or expansion — and, just as importantly, how much of the loan you actually get to use. Lenders frequently charge an origination or packaging fee that is deducted upfront, so the cash you can deploy is less than the amount you borrow, while repayments are based on the full figure. Enter the amount, rate, term, and fee to see your payment, your net funds, and the real cost of the financing.
- Principal
- Interest
- Net funds received
- $98,000.00
- Origination fee
- $2,000.00
- Total interest
- $24,550.13
- Total repaid
- $124,550.13
- Term
- 5 yr
The 2% fee takes 2000 off the top, so only 98000 is available as working capital while you still repay the full 100000. With interest and fee combined, the real cost of this financing is about 26550 — above what the 9% rate alone implies.
Amortization schedule
| Year | Payment | Interest | Principal | Balance |
|---|---|---|---|---|
| 1 | $24,910.03 | $8,327.02 | $16,583.00 | $83,417.00 |
| 2 | $24,910.03 | $6,771.42 | $18,138.60 | $65,278.40 |
| 3 | $24,910.03 | $5,069.90 | $19,840.13 | $45,438.27 |
| 4 | $24,910.03 | $3,208.76 | $21,701.27 | $23,737.00 |
| 5 | $24,910.03 | $1,173.03 | $23,737.00 | $0.00 |
Ways to optimize
Real what-if scenarios calculated from your numbers.
Scenarios use the exact same math as the calculator — no estimates.
How it works
A term business loan is repaid in level monthly installments on a reducing balance: interest is charged on the outstanding amount each month, the remainder of the payment cuts the balance, and the payment stays constant until the loan is cleared. That core math is the same whether you are buying a delivery van, financing inventory, or bridging a seasonal cash-flow gap.
The figure that drives business decisions, though, is net funds. An origination fee is usually taken from the loan before disbursement — borrow 100,000 with a 2% fee and only 98,000 reaches the business — yet you repay the full 100,000 with interest. So the capital you can actually put to work is smaller than the loan, and the true cost of financing is the interest plus the fee. This calculator separates the headline rate from that real cost so you can judge an offer on what it delivers and what it ultimately takes back.
Fee = loan amount × origination fee %. Net funds received = loan amount − fee. Monthly payment = amount · i · (1 + i)^n / ((1 + i)^n − 1), with i = annual rate ÷ 12 ÷ 100 and n = years × 12. Repayment is on the full amount; the fee reduces only the funds you can deploy.
Worked example
Borrow 100,000 at 9% over 5 years (60 months) with a 2% origination fee. The fee is 100,000 × 2% = 2,000, so 98,000 of working capital actually reaches the business while you repay the full 100,000. The monthly payment is about 2,076. Over 60 months you repay roughly 124,560, meaning about 24,560 in interest. Add the 2,000 fee and the financing costs about 26,560 against the 98,000 you could deploy — materially more than the 9% rate suggests on its own.
Things to watch out for
Business loans vary more than consumer loans: rates can be fixed or variable, and some lenders quote factor rates or daily-repayment structures that this fixed-rate model does not capture — convert those to an equivalent APR before comparing. Secured loans against equipment or property usually carry lower rates and fees than unsecured working-capital lines. Watch for prepayment penalties, which can erase the savings from paying down a loan early. For very short-term financing, a seemingly small fee can dominate the cost, so always check the real-cost figure rather than the rate alone.
Frequently asked questions
How much of the loan do I actually receive?+
The net funds figure: your loan amount minus the origination fee, which most lenders deduct before disbursing the loan. You still repay the full amount you borrowed, plus interest.
Does the origination fee affect my monthly payment?+
No. The payment is based on the full loan amount. The fee does not change the payment, but it reduces the capital you can deploy and raises the real cost of the financing.
What counts as the real cost of a business loan?+
The total interest you pay plus the origination fee, measured against the net funds you actually receive. That combined figure is a fairer basis for comparing offers than the headline rate.
Can I use this for equipment or working-capital loans?+
Yes, for any fixed-rate term loan repaid in equal monthly installments. For factor-rate, line-of-credit, or daily-repayment products, convert the cost to an equivalent annual rate first, as those structures differ from this model.
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Disclaimer: This calculator is for educational and informational purposes only and provides estimates, not financial advice. Interest rates, taxes, fees, and local rules vary and change over time. Confirm figures with a qualified professional before making any financial decision.
Last reviewed: 2026-06-22