Business Loan Calculator
Calculate commercial business loan payments, SBA loan interest, and total cost of borrowing for company expansion.
How to Use the Business Loan Calculator
- Enter your parameters: Type, paste, or select your input values above.
- View instant results: Calculations update in real time as you change values.
- Copy or export: Click copy, download, or print to use your results immediately.
About this Tool
Estimate monthly debt service, principal amortization, and interest costs for term loans, lines of credit, and SBA financing.
Fixed-Rate Amortization Formula
Monthly Payment (M) = P * [r(1 + r)^n] / [(1 + r)^n - 1]Monthly interest is calculated on your remaining loan balance, while principal repayment reduces the debt baseline for all future months. Loan amortization schedules recalculate this ratio each month.
Worked Example: 30-Year Fixed Mortgage Example
$400,000 Loan Amount at 6.50% Annual Interest for 30 Years (360 Months)
$2,528.27 Monthly Principal & Interest Payment
Over 30 years, total principal repaid is $400,000.00 and total interest paid is $510,177.20. An extra $100 monthly payment saves over $58,000 in interest and shortens the loan by nearly 3 years.
Frequently Asked Questions
What is included in a monthly mortgage payment (PITI)?
A standard mortgage payment consists of Principal (loan reduction), Interest (lender charge), Taxes (county property taxes held in escrow), and Insurance (homeowners insurance and private mortgage insurance if down payment is under 20%).
How do extra principal payments reduce overall loan interest?
Extra payments reduce your principal balance directly. Because monthly interest is calculated as (Remaining Balance * Monthly Rate), reducing principal immediately shrinks the interest charged in every subsequent month.
What is the difference between APR and interest rate on a mortgage?
The interest rate is the base cost of borrowing the principal. The Annual Percentage Rate (APR) reflects the broader cost of credit, including lender origination fees, discount points, and closing charges.
Calculation Standards
Calculations follow standard Consumer Financial Protection Bureau (CFPB) mortgage amortization formulas and Fannie Mae underwriting conventions. For tax, legal, or medical advice, consult certified professionals.
Explore More in Business and Work Tools
Find more online utilities for business and work tools.
Browse all Business and Work Tools toolsRelated Tools
Explore additional utilities in this category
Loan Calculator
Compute monthly loan payments, total payoff cost, and interest for personal, business, or student loans.
Break-Even Calculator
Calculate the break-even sales volume in units and dollars required to cover fixed and variable business costs.
Percentage Calculator
Calculate percentages, percentage increase or decrease, and find what percent one number is of another.
Ratio Calculator
Simplify ratios, scale proportions up or down, and solve for missing ratio terms (A:B = C:D).
Mortgage Calculator
Calculate monthly mortgage payments (PITI) including principal, interest, property taxes, and home insurance.
Auto Loan Calculator
Estimate monthly car payments, total loan cost, vehicle sales tax, and trade-in value impact.