Business Loan Calculator

Business Loan Calculator – Calculate Your Monthly Payments Instantly

Finding the right business loan starts with understanding exactly how much it will cost your company. Our business loan calculator helps you estimate monthly payments, total interest costs, and complete amortization schedules before you commit to financing. Whether you’re exploring SBA loans, traditional term loans, or merchant cash advances, this calculator provides the financial clarity you need to make informed borrowing decisions.

Using Benifyt’s business loan calculator is straightforward: simply enter your desired loan amount, select your loan term (in months or years), and input the annual interest rate quoted by your lender. The calculator instantly generates your estimated monthly payment, total principal amount, cumulative interest over the loan term, and total cost of borrowing. You can also add origination fees and other closing costs to get a complete picture of your financing expenses.

Small business owners across the United States rely on accurate loan calculations to budget effectively and compare offers from multiple lenders. With interest rates varying significantly based on your credit profile, industry, and loan type, understanding the true cost of capital is essential. Our calculator uses the standard amortization formula employed by banks and credit unions, ensuring the results closely match what you’ll see in actual loan offers.

Types of Business Loans You Can Calculate

SBA 7(a) Loans are among the most popular and affordable options for established businesses. These government-backed loans offer amounts up to $5 million with competitive interest rates typically ranging from 11% to 13% APR. The SBA guarantee reduces lender risk, making it easier for small businesses to qualify even without perfect credit.

Traditional Term Loans from banks and online lenders provide lump-sum financing with fixed monthly payments. Loan amounts range from $5,000 to $500,000, with terms between one and five years. While interest rates vary based on creditworthiness and collateral, term loans offer predictable repayment schedules ideal for specific investments.

Merchant Cash Advances provide quick funding based on your future credit card sales or daily revenue. While accessible to businesses with lower credit scores, MCAs use factor rates instead of traditional interest rates and typically cost more than conventional loans. Repayment is automatic through a percentage of daily sales.

Equipment Financing uses the purchased equipment as collateral, often resulting in lower interest rates and higher approval rates. These secured loans typically cover 80-100% of equipment costs with terms matching the useful life of the asset, usually between two and seven years.

How to Qualify for Better Business Loan Rates

Qualifying for competitive business loan rates requires meeting specific financial and operational criteria that demonstrate your ability to repay borrowed funds.

Credit Score Requirements: Traditional banks typically require personal credit scores above 680 for the best rates. Online lenders may approve borrowers with scores as low as 600, though higher rates apply. SBA loans generally require minimum scores of 650-690 depending on the program.

Revenue and Time in Business: Most lenders require minimum annual revenues between $50,000 and $250,000, with specific thresholds depending on the loan amount. Traditional banks and SBA loans usually require at least two years in business, while some online lenders work with newer companies.

Documentation Needed: Prepare tax returns (typically two years), bank statements, profit and loss statements, balance sheets, and business debt schedules. Having these documents organized and ready accelerates the application process and demonstrates professional financial management.

Understanding Business Loan Costs

Interest Rates in 2026: Competitive small business loan interest rates typically range from 6% to 30% APR, depending on your credit score, business financials, loan type, and lender:

• SBA 7(a) Loans: 11-13% APR
• Traditional Bank Term Loans: 7-15% APR
• Online Lender Term Loans: 10-30% APR
• Equipment Financing: 8-25% APR
• Merchant Cash Advances: 40-350% APR equivalent (factor rates of 1.1-1.5)

Common Fees to Expect:

• Origination Fees: 1-6% of loan amount
• Application Fees: $75-500
• Underwriting Fees: $500-2,500
• Annual Fees: $100-500 (for certain loan products)

Our calculator includes fields for origination fees and other costs, giving you an accurate total borrowing cost estimate.

FREQUENTLY ASKED QUESTIONS

How do I calculate my monthly business loan payment?

To calculate your monthly business loan payment, you need the loan amount (principal), annual interest rate (APR), and loan term in months. Our calculator uses the standard amortization formula to instantly compute your payment. For example, a $50,000 loan at 8% annual interest over 5 years would have a monthly payment of approximately $1,013.82.

How much can I borrow with a business loan?

Business loan amounts vary based on lender type and your qualifications:

• Traditional Banks: $25,000 to $5 million
• SBA Loans: Up to $5 million
• Online Lenders: $5,000 to $500,000
• Merchant Cash Advances: $2,500 to $500,000
• Equipment Loans: Up to 100% of equipment value

Use our calculator to determine what monthly payment fits your budget before requesting a specific loan amount.

Should I get a fixed or variable rate business loan?

Fixed-rate loans offer constant monthly payments throughout the term, making budgeting easier and protecting you from rate increases. They’re best for longer-term loans (3+ years).

Variable-rate loans fluctuate based on market indices, often starting with lower rates but carrying more risk. They’re better for short-term borrowing (under 2 years).

Use our calculator to model different interest rates and see how payment changes would impact your cash flow.

How long does it take to get approved for a business loan?

Approval timelines vary significantly:

• Online Lenders: 1-7 business days
• Traditional Banks: 2-8 weeks
• SBA Loans: 60-90 days
• Credit Unions: 1-4 weeks

Speed up approval by having complete documentation ready, maintaining strong credit scores, and using our calculator to know exactly what terms to request.

Can I get a business loan with bad credit?

Yes, you can get a business loan with bad credit (FICO below 650), but expect higher interest rates and stricter requirements. Online alternative lenders specialize in bad credit business loans, approving scores as low as 500-600 with APRs from 15-30%+. Secured loans using collateral can improve approval odds and lower rates.

NEXT STEPS: Apply for Business Financing

Now that you’ve calculated your potential business loan costs, you’re ready to take the next step. Use the insights from our calculator to:

1. Compare multiple lender offers using consistent loan terms
2. Determine your affordable monthly payment based on cash flow
3. Prepare required documentation for faster approval
4. Apply for financing with confidence in your budget

Ready to get started?