How to Use the Business Loan Calculator

Our business loan calculator is designed to be intuitive and comprehensive, helping you plan your commercial loan with ease. Follow these step-by-step instructions to use this commercial loan calculator and get a clear picture of your monthly payments and total costs.

Step 1: Select the Loan Type

• Loan Type: Choose the type of loan that best fits your needs. Options include “I’ll choose my own” (custom), “SBA 7(a) Loan,” “Online Term Loan,” or “Business Line of Credit.” For example, select “SBA 7(a) Loan” to automatically adjust the interest rate to a typical SBA rate like 7.5%.

Step 2: Enter the Loan Details

• Loan Amount ($): Input the total amount you plan to borrow. For example, if you’re borrowing $10,000, enter “10000” to calculate your business loan payments.
• Interest Rate (%): Enter the annual interest rate offered by your lender. For example, if the rate is 10%, enter “10”. Note that selecting a loan type may adjust this rate automatically.
• Compound: This field is set to “Monthly (APR)” by default, reflecting the standard compounding method for most business loans.
• Loan Term: Specify the duration of your loan in years and/or months. For example, enter “5” years and “0” months for a 5-year loan term.
• Pay Back: This field is set to “Every Month” by default, as monthly payments are standard for most business loans.
• Start Date: Select the date when your loan begins. For example, choose “04/10/2025” to calculate your payoff date accurately.

Step 3: Add Fees

• Origination Fee (%): Input the origination fee as a percentage of the loan amount. For example, enter “5” for a 5% fee, which would be $500 on a $10,000 loan.
• Documentation Fee ($): Enter any documentation fees. For example, enter “750” for a $750 fee.
• Other Fees ($): Add any additional fees. For example, enter “0” if there are no other fees.

Step 4: Calculate Your Loan

After filling in all the fields, click the Calculate button. The business loan calculator will instantly display your results, including your monthly payment and total costs.

Step 5: Review Your Results

• Payback Every Month: The amount you’ll pay each month, such as “$212.47”.
• Total of Loan Payments: The total amount paid over the loan term, including principal and interest, like “$12,748.23” for 60 payments.
• Interest: The total interest paid, for example, “$2,748.23”.
• Interest + Fee: The combined cost of interest and fees, such as “$3,998.23”.
• Real Rate (APR): The true annual percentage rate, including fees, like “15.931%”.
• Payoff Date: The date when your loan will be fully paid, such as “04/2030”.

Step 6: Explore the Payment Breakdown

The Payment Breakdown section shows a pie chart illustrating the proportion of your total payments that go toward principal, interest, and fees, helping you understand your expenses with this commercial loan calculator.

Step 7: Check the Amortization Schedule

• The Amortization Schedule provides a detailed view of your loan repayment over time using this business loan calculator.
• Toggle between Annual and Monthly views using the tabs.
  • Annual View: Shows the total interest, principal, and remaining balance for each year.
  • Monthly View: Breaks down the interest, principal, and balance for each month.
• For example, in the annual view, you might see that in Year 1, you paid $950.12 in interest, $1,599.52 in principal, leaving a balance of $8,400.48.

Step 8: Adjust and Recalculate

To explore different scenarios (e.g., a different loan type or term), adjust the input values and click Calculate again. You can also click Clear to reset all fields and start over with this commercial loan calculator.

This business loan calculator is designed to help you understand the true cost of your loan, empowering you to make informed financial decisions for your business.