Business Loan Calculator
Calculate your business loan payments, total interest, and compare different financing options for your small business.
Term Loan: Fixed payments for working capital or expansion
SBA Loan: Government-backed with longer terms
Equipment Loan: Secured financing for business equipment
Additional Options
Payment Summary
Monthly Payment:
$0.00
Total Payments:
$0.00
Total Interest:
$0.00
Payoff Date:
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Loan Analysis
Principal Amount:
$0.00
Interest Rate:
0.00%
Loan Term:
0 years
Interest as % of Total:
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Amortization Schedule
Enter loan details and click calculate to see amortization schedule
Understanding Business Loans
Business loans are essential financing tools for entrepreneurs and business owners. Understanding the different types of business loans and their terms can help you make informed decisions about financing your business growth.
Types of Business Loans
Term Loans
- Lump sum payment with fixed monthly payments
- Used for equipment, real estate, working capital
- Terms from 1-10 years typically
- Fixed or variable interest rates
SBA Loans
- Government-backed loans through SBA
- Lower interest rates and longer terms
- 7(a) loans up to $5 million
- More flexible qualification requirements
Equipment Financing
- Secured loans using equipment as collateral
- Often 100% financing available
- Terms match equipment useful life
- Tax benefits for depreciation
Line of Credit
- Revolving credit similar to credit card
- Draw funds as needed, pay interest on balance
- Used for short-term working capital
- More flexible than term loans
Business Loan Interest Rates (2024)
| Loan Type | Interest Rate Range | Typical Term | Loan Amount |
|---|---|---|---|
| SBA 7(a) | 6.5% - 9.75% | 5-10 years | Up to $5M |
| SBA Express | 7.5% - 10.5% | 1-7 years | Up to $500K |
| Equipment Loan | 5% - 15% | 1-7 years | Up to equipment cost |
| Business Line of Credit | 7% - 25% | 6-18 months | Up to $100K |
| Working Capital Loan | 6% - 99% | 6-18 months | Up to $500K |
Business Loan Requirements
Common Requirements for Business Loans
Business Requirements
- Minimum 1-2 years in business
- Good personal and business credit
- Consistent revenue and cash flow
- Collateral may be required
Documentation Needed
- Business plan and financial statements
- Tax returns (personal and business)
- Bank statements and profit/loss statements
- Legal documents and licenses
Owner Requirements
- Minimum credit score (usually 680+)
- Personal guarantee often required
- Debt-to-income ratio under 36%
- Industry experience preferred
SBA-Specific Requirements
- Operate for profit
- Meet SBA size standards
- Good character and reputation
- Sound business purpose
Alternative Financing Options
Online Lenders
- Kabbage, OnDeck, LendingClub
- Faster approval process
- Higher interest rates
- Shorter repayment terms
Equipment Leasing
- 100% financing often available
- Tax advantages
- Preserves working capital
- Flexible terms
Invoice Financing
- Finance unpaid invoices
- Up to 90% of invoice value
- Fast access to cash
- No personal guarantee required
Microloans
- Loans up to $50,000
- Lower credit requirements
- Educational support included
- Community development focus
Key Takeaways for Business Loans
- Shop around and compare rates from multiple lenders
- Understand all fees and closing costs
- Consider your debt service coverage ratio
- SBA loans offer the best rates but longer approval time
- Online lenders provide faster funding but higher rates
- Equipment financing can be 100% financed
- Prepare thorough financial documentation
- Consider alternative financing if traditional loans unavailable