Business Loan Calculator
Business loan payments – monthly, every two weeks, weekly or daily – with the origination fee, the total cost and the real APR, also for factor-rate financing.
How a business loan payment is calculated
A term loan is repaid in equal instalments: payment = amount × r ÷ (1 − (1 + r)⁻ⁿ), where r is the rate per payment period and n the number of payments. Example: $100,000 over 36 months at 10% costs $3,226.72 a month – $116,162 in total, $16,162 of interest.
The fee changes the real cost
An origination fee is usually deducted from the money you receive. With a 3% fee you get $97,000 but repay as if you had borrowed $100,000, which lifts the APR from 10% to 12.11%. Always compare offers by APR, not by the quoted rate.
Factor rates
Merchant cash advances and many online lenders quote a factor rate such as 1.25: you repay $1.25 for every $1 borrowed, often in daily or weekly debits. That is not 25% a year – $100,000 at 1.25, repaid daily over 36 months with a 3% fee, equals an APR of about 17.7%, and over shorter terms far more.
Common types of business loans
- SBA 7(a) loans – government-guaranteed, capped rates, up to 10 years (25 for real estate).
- Bank term loans and lines of credit – usually need two years of trading and good credit.
- Equipment financing – the equipment secures the loan.
- Online loans and cash advances – fast, but often the most expensive.
Frequently asked questions
How do I calculate the APR of a business loan with fees?
Find the rate at which the payments equal the amount you actually receive after fees – the calculator does this automatically.
What is a factor rate?
A multiplier of the amount borrowed: 1.3 means you repay $1.30 per $1. It ignores time, so short terms hide a very high APR.
Are weekly payments cheaper?
At the same annual rate, slightly – the balance falls faster. But weekly or daily debits put more pressure on cash flow.