How do I calculate my monthly small business loan payment?

Use the standard amortization formula: M = P[r(1+r)^n]/[(1+r)^n-1], where P is principal, r is monthly rate, and n is number of payments. This calculator does it instantly.

What interest rate should I use for a small business loan?

SBA 7(a) loan rates typically range from 10.5% to 13.5% in 2026. Bank term loans range from 6% to 12%. Enter your quoted rate to see the real monthly cost.

How much can a small business borrow?

SBA 7(a) loans go up to $5 million. Bank term loans typically range from $25,000 to $500,000 depending on revenue and creditworthiness.

Small Business Loan Calculator — Monthly Payment & Total Cost

Your Numbers

Loan amount

Annual interest rate (SBA 7(a): ~11–13%, bank term: ~7–12%)

Loan term (years)

Results

Enter your loan details above to see the full cost breakdown.

Loan cost breakdown

Monthly payment

Total repaid

Total interest paid

Interest as % of loan

Running a service business? Every missed call is a lead you paid for, lost. LeadLock texts back every missed call in 30 seconds — automatically.

Try LeadLock Free First month free. No credit card required.

This calculator is for informational purposes only. Results are estimates based on the inputs you provide. Consult a qualified financial professional before making business decisions.

Frequently Asked Questions

Monthly payment = loan amount x [monthly rate x (1 + monthly rate)^months] / [(1 + monthly rate)^months - 1]. For a $50,000 loan at 8% annual rate over 5 years: monthly rate = 0.667%, payment is approximately $1,014. Use this calculator to run any scenario in seconds.

SBA 7(a) loans range from 10.5-13% as of 2026. Conventional bank loans run 6-10% for well-qualified borrowers. Online lenders charge 15-35%. Merchant cash advances can exceed 50% APR. Always compare total cost of capital, not just the monthly payment, before signing.

Most traditional banks require a personal credit score of 680 or above. SBA loans require 650 minimum. Online lenders work with scores as low as 550 but charge higher rates. Your business credit score, time in business, and annual revenue matter equally alongside personal credit.

Interest rate is the base cost of borrowing. APR (annual percentage rate) includes the interest rate plus all fees: origination, processing, packaging. APR is the true cost of the loan. A loan with a 9% rate and 3% origination fee has an APR closer to 11-12% depending on term.

SBA 7(a) loans go up to $5 million (raised to $10 million in 2026 for qualified borrowers). Conventional bank loans vary widely. Most lenders cap the loan at 10-20% of annual revenue for new businesses. Established businesses with strong cash flow can borrow 3-5x monthly revenue in some cases.

Short-term loans have higher monthly payments but lower total interest. Long-term loans have lower monthly payments but cost more overall. Short-term is better when you need cash flow flexibility or expect to pay off early. Long-term is better for large capital investments where you need low monthly cash obligations.