Does this include origination fees or closing costs?

No. The calculator models principal, rate and term only. Origination fees, SBA guarantee fees, packaging fees and closing costs sit on top of the numbers shown. If your lender charges 2% up front on a $100,000 loan, add $2,000 to the total cost yourself.

Can I use it for a variable-rate loan or a line of credit?

Only as a rough baseline. The formula assumes one fixed rate for the whole term. On a variable-rate facility the payment moves with the index, and on a revolving line you pay interest on the drawn balance rather than an amortising schedule.

Why does the tool not show an amortisation schedule?

This calculator returns totals rather than a month-by-month table. The split between interest and principal shifts every month, with early payments weighted heavily toward interest, so if you need the per-month breakdown ask the lender for the schedule attached to the offer.

Will the payment my bank quotes match this exactly?

Usually to within a few dollars. Differences come from day-count conventions, whether the first payment is due immediately or a month out, and any rounding the lender applies. Treat a small variance as normal and a large one as a question worth asking.

Does the calculator tell me if I will be approved?

No. It does no credit assessment of any kind. Approval depends on time in business, revenue, debt service coverage, collateral and the owner guarantee, none of which this tool asks for or evaluates.

Is this for US loans or Pakistani ones?

The figures are in US dollars and the tool is aimed at US borrowers. TaxEase also sells professional filing and compliance services in Pakistan under FBR and SECP rules, which is a separate offering with its own pricing and has nothing to do with this calculator.

What happens if I make extra payments?

The tool does not model prepayment. Any extra amount applied to principal shortens the term and cuts total interest below the figure shown here, which makes this result a conservative ceiling as long as your loan has no prepayment penalty.

Business Loan Calculator: Monthly Payment and Interest

Business Loan Calculator: Monthly Payment and InterestThe Business Loan Calculator is a free browser-based tool that turns a loan amount, an annual interest rate and a term in years into a monthly payment, the total interest you will pay, and the total amount repaid. It uses the standard amortisation formula, the same one a lender uses to build a payment schedule, so the monthly figure matches what a fixed-rate term loan would quote. Everything is computed on your device; nothing is submitted anywhere. The result is an estimate for planning, not a loan offer, and it deliberately ignores fees, so treat it as the floor of what borrowing will cost.

What people use it for

Deciding whether equipment pays for itself

A print shop owner is quoted $100,000 for a wide-format press and can borrow at 8% over five years. Before signing, she needs the monthly number to compare against the extra jobs the press would let her take. Entering the three figures gives $2,027.64 a month, which she can weigh directly against the roughly $3,500 of monthly work she expects it to unlock.

Comparing two lender offers on equal terms

A contractor has one offer at 9% over four years and another at 7.5% over seven. The headline rates suggest the second is cheaper, but the longer term changes the total. Running both through the calculator shows the monthly payment and the total interest side by side, which is the comparison that actually matters when cash flow is tight.

Sizing a loan to a payment you can already afford

A restaurant knows it can commit $1,500 a month without straining payroll. Rather than guess, the owner tries loan amounts at the rate the bank quoted until the monthly payment lands near $1,500. That gives a realistic borrowing ceiling to walk into the meeting with, instead of accepting whatever the lender offers.

Explaining the true cost to a co-founder or board

The total interest line is the one that changes minds. A $250,000 loan at 10% over ten years costs about $146,452 in interest on top of the principal. Showing that number, rather than the monthly payment alone, reframes a borrowing decision that looked routine into one worth negotiating harder.

How it works

Enter the loan amount Type the principal you intend to borrow in the Loan Amount field. Use the amount actually advanced to you, not the equipment price, if the lender is deducting fees from the disbursement.
Enter the annual interest rate Put the nominal annual rate in the Annual Interest Rate field as a percentage. If the lender quoted an APR that bundles fees, the payment shown will be slightly higher than a rate-only calculation.
Set the term in years The Loan Term field takes years and accepts half-year steps, so a thirty-month loan is 2.5. The tool converts that to months internally before amortising the balance.
Press Calculate Loan Payment The monthly payment appears first, followed by three supporting figures: the loan amount you entered, the total interest, and the total repaid across the whole term.
Read the total interest, not just the payment Total interest is the real cost of the loan. Change the term and recalculate to see how much a shorter schedule saves, then check the payment is still one you can carry.

Worked examples

Input: Loan amount $100,000, annual rate 8%, term 5 years.

Result: Monthly payment $2,027.64, total interest $21,658.37, total repaid $121,658.37. Interest adds roughly twenty-two cents to every dollar borrowed over the five years.

Input: Loan amount $250,000, annual rate 10%, term 10 years.

Result: Monthly payment $3,303.77, total interest about $146,452, total repaid about $396,452. Doubling the term at a higher rate makes interest almost 59% of the principal.

Frequently asked questions

Does this include origination fees or closing costs?: No. The calculator models principal, rate and term only. Origination fees, SBA guarantee fees, packaging fees and closing costs sit on top of the numbers shown. If your lender charges 2% up front on a $100,000 loan, add $2,000 to the total cost yourself.
Can I use it for a variable-rate loan or a line of credit?: Only as a rough baseline. The formula assumes one fixed rate for the whole term. On a variable-rate facility the payment moves with the index, and on a revolving line you pay interest on the drawn balance rather than an amortising schedule.
Why does the tool not show an amortisation schedule?: This calculator returns totals rather than a month-by-month table. The split between interest and principal shifts every month, with early payments weighted heavily toward interest, so if you need the per-month breakdown ask the lender for the schedule attached to the offer.
Will the payment my bank quotes match this exactly?: Usually to within a few dollars. Differences come from day-count conventions, whether the first payment is due immediately or a month out, and any rounding the lender applies. Treat a small variance as normal and a large one as a question worth asking.
Does the calculator tell me if I will be approved?: No. It does no credit assessment of any kind. Approval depends on time in business, revenue, debt service coverage, collateral and the owner guarantee, none of which this tool asks for or evaluates.
Is this for US loans or Pakistani ones?: The figures are in US dollars and the tool is aimed at US borrowers. TaxEase also sells professional filing and compliance services in Pakistan under FBR and SECP rules, which is a separate offering with its own pricing and has nothing to do with this calculator.
What happens if I make extra payments?: The tool does not model prepayment. Any extra amount applied to principal shortens the term and cuts total interest below the figure shown here, which makes this result a conservative ceiling as long as your loan has no prepayment penalty.

Tips

Run the same loan at two terms before you commit. Shortening a five-year loan to four raises the payment but often removes thousands of dollars of interest.
Ask the lender for the APR, not just the interest rate. Entering the APR here gets you closer to the real cost because it folds in some of the fees this tool ignores.
If the payment consumes more than a comfortable share of your monthly free cash flow, borrow less rather than stretching the term. A longer term hides the problem instead of solving it.
Keep the printed result with the offer letter. When two lenders come back with different structures, the total interest column settles the argument quickly.

Written by Ahsan Mahmood. Last updated 2026-07-21. This calculator runs entirely in your browser and produces estimates, not tax advice.TaxEase — Business Loan Calculator: Monthly Payment and Interest