Finance category
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Business Loan Calculator
Model one business loan quote or compare two offers side by side by payment, usable proceeds, fees, and total borrowing outflow.
Turn on Offer B to compare two written lender quotes without losing your Offer A inputs.
Offer A results
- Monthly payment
- $3,150.28
- Annual debt service (12×)
- $37,803.35
- Total interest
- $39,016.75
- Origination fee dollars
- $3,000.00
- Net proceeds
- $147,000.00
- Total borrowing outflow
- $189,016.75
- All-in financing cost
- $42,016.75
Formulas and assumptions
Monthly payment uses the fixed-rate amortization formula. At 0% interest, it is simply loan amount divided by term months. Annual debt service is monthly payment multiplied by 12.
Origination fee dollars equal loan amount multiplied by fee percentage. Net proceeds assume the fee is withheld from funding. Total borrowing outflow is the sum of scheduled principal-and-interest payments; the withheld fee is not paid a second time. All-in financing cost equals that outflow minus net proceeds, which is the same as total interest plus the origination fee.
EveryCalc calculators are designed for fast, practical estimates with transparent inputs and no required account. We use plain formulas, visible assumptions, and related tools so visitors can check the result from more than one angle.
Results are informational only. For financial, tax, legal, medical, construction, or other high-impact decisions, verify the output against primary sources or a qualified professional.
Learn more about our review process on the EveryCalc methodology page.
Calculation notes and example
Business term-loan payment and quote-comparison model
For each offer, monthly payment uses the fixed-rate amortization formula from that offer's loan amount, annual interest rate divided by 12, and term in months. At 0% interest, payment equals principal divided by months. Annual debt service equals monthly payment multiplied by 12. Total interest equals scheduled payments minus principal. Origination fee dollars equal loan amount multiplied by the fee percentage. Net proceeds assumes the fee is withheld from funding. Total borrowing outflow equals scheduled principal-and-interest payments and does not add that withheld fee again. All-in financing cost equals total borrowing outflow minus net proceeds, which is also total interest plus the fee. Cost is compared only when both offers use the same loan amount. The model does not calculate APR or include closing, guarantee, packaging, legal, maintenance, or prepayment charges.
Payment, proceeds, and total-outflow example
Offer A for $150,000 at 9.5% over 60 months with a 2% withheld fee produces a modeled payment near $3,150, about $39,000 of interest, $147,000 of net proceeds, about $189,000 of scheduled outflow, and about $42,000 of all-in financing cost above usable proceeds. A shorter Offer B could carry a higher payment while reducing total interest; a smaller fee could also deliver more net cash. That is why the comparison names the lowest payment, highest proceeds, and lowest all-in cost separately instead of calling one quote universally best.
Compare structure as well as price
- Enter each quote exactly as written; lenders may offer different funded amounts as well as different rates, terms, and fees.
- Confirm whether the fee is withheld, financed, or paid in cash; the calculator assumes it is withheld but not financed.
- Fixed monthly amortization does not represent variable-rate loans, daily-debit products, lines of credit, balloons, seasonal schedules, or merchant cash advances.
- Match term to asset life and stress-test debt service after owner compensation, taxes, working capital, and maintenance spending.
Useful companion tools: SBA 7(a) Loan Calculator, APR Calculator, Debt Payoff Calculator, and Cash-on-Cash Return Calculator.
How to interpret the business loan result
Best use
Use the result as a planning number for comparing payments, rates, returns, tax reserves, or cash-flow choices before you request a quote or make a commitment.
Cross-check
Compare the answer with the contract, lender estimate, tax form, brokerage statement, payroll record, or invoice that will control the real-world outcome.
Watch for
Do not rely on a single optimistic rate, return, or fee assumption. Money pages work best when you run low, base, and high cases and keep professional advice separate from the estimate.
This page belongs to the Finance calculator library, so the answer should be read in the context of the decision you are modeling rather than as a universal rule.
Before relying on this business loan estimate
Most calculator mistakes come from the inputs, not the arithmetic. Use this short audit before you reuse the answer in a spreadsheet, quote, application, or important conversation.
Confirm source numbers
Match balances, rates, fees, taxes, income, and payment dates against the lender quote, payroll record, tax form, statement, invoice, or contract.
Separate cash flow from total cost
A lower monthly payment can still cost more over time if fees, interest, taxes, or a longer term are hidden in the structure.
Run conservative cases
Test at least one higher-cost or lower-return case before using the output for a purchase, refinance, investment, loan, or tax decision.
Rerun this page when the rate, price, term, fee, tax rule, income, expense, or expected holding period changes.
Sources used for this calculator
These primary or official references help define the rules, terminology, safety checks, or source documents behind this estimate. Source links were checked in July 2026. They do not turn the calculator output into a quote, appraisal, tax determination, or professional opinion.
- Types of 7(a) loans
U.S. Small Business Administration
Lists current 7(a) program types, loan amounts, guaranty levels, rate rules, and program-specific terms.
How to Use
- Enter the amount, fixed annual interest rate, term in months, and origination fee from your written Offer A. Keep the default figures if you only want a general estimate.
- Turn on Offer B when you have a second quote, then enter that lender's amount, rate, term, and fee separately.
- Compare monthly payment and annual debt service against conservative free cash flow, including slower months rather than only peak revenue periods.
- Compare net proceeds to see how much usable cash remains when an origination fee is withheld from funding.
- Read the three-part verdict separately: the offer with the lowest payment may not provide the highest proceeds or the lowest all-in financing cost. Cost is only compared when both offers have the same loan amount.
Frequently Asked Questions
What counts as an origination fee?
An origination fee is an upfront lender charge, usually expressed as a percentage of the amount borrowed. It does not reduce the stated principal you owe, but it does increase the all-in cost of getting the financing.
Why can a lower monthly payment still be a worse loan?
A lower payment often comes from extending the repayment term. That can help short-term cash flow, but it may raise total interest enough to produce a higher all-in financing cost. The comparison therefore reports payment, net proceeds, and cost as separate decisions rather than naming one universal winner; it only compares cost when the loan amounts match.
Can I use this for SBA, term, or equipment loans?
Yes, as a general estimate for fixed-rate installment loans with monthly amortization. It is less suitable for merchant cash advances, variable-rate debt, or structures with balloon payments and irregular fees.
What should I compare besides payment?
Compare annual debt service, total interest, origination fee dollars, the net cash that actually lands in the business, total scheduled borrowing outflow, and all-in financing cost above net proceeds. Then review collateral, personal guarantees, prepayment rules, variable-rate terms, and charges not modeled here in the lender documents.
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