Business Loan Calculator — Monthly Repayment & Total Interest
Find out exactly what a business loan will cost: enter the loan amount, annual interest rate, and term to see the fixed monthly repayment, total interest paid over the life of the loan, and a month-by-month balance chart.
%
years
Fixed payment due each month over the loan term
- 1
Monthly interest rate
r = 7.5% ÷ 12 ÷ 100 = 0.00625 - 2
Number of payments
n = 5 × 12 = 60 - 3
Growth factor
(1 + r)ⁿ = 1.00625ⁿ = 1.4533How much one unit of the loan grows over the full term at the monthly rate. - 4
Monthly repayment
250,000 × 0.00625 × 1.4533 ÷ (1.4533 − 1) = 5,009.49
How does this calculator work?
Monthly Payment = P × r × (1+r)^n ÷ ((1+r)^n − 1) where r is the monthly rate and n is the number of months. Enter the loan amount, annual rate and term to see your fixed monthly repayment, total interest paid, and a chart of the declining loan balance.
Formula
How this is calculated
Business loans are typically repaid as equal monthly instalments (EMIs) that combine interest and principal in varying proportions. Each month, interest accrues on the outstanding balance; the remainder of the fixed payment reduces the principal. In early months, most of the payment is interest; by the final months, almost all of it is principal. This is called an amortising loan.
The monthly payment formula is derived from the present-value-of-annuity equation: P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments. Multiplying the monthly payment by n gives the total repayment; subtracting the principal gives the total interest cost.
This calculator models a simple fixed-rate term loan with equal monthly payments. It does not account for origination fees, balloon payments, variable rates, or early-repayment charges — common additions in real business lending. Always check the full loan agreement for the true APR and any additional costs.
Frequently asked questions
Business loans are typically for larger amounts, may require business financial statements or collateral, and interest may be tax-deductible as a business expense. The repayment mechanics — fixed monthly payments of principal plus interest — are the same as a personal loan.
Enter the annual interest rate (APR) from your loan agreement, not a monthly rate. Common business loan rates range from 5% to 15% for secured loans from banks, and higher for unsecured or alternative lenders. Confirm with your lender which rate applies.
No — this calculator assumes a fixed-term amortising loan with a set repayment schedule. Lines of credit and overdrafts are revolving facilities where interest accrues only on the drawn balance; use a dedicated revolving credit calculator for those.
TG we-Calculate Editorial Team. (2026). Business Loan Calculator — Monthly Repayment & Total Interest [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/business-loan-calculator
TG we-Calculate Editorial Team. "Business Loan Calculator — Monthly Repayment & Total Interest." TG we-Calculate. 2026. https://we-calculate.com/calculator/business-loan-calculator.
TG we-Calculate Editorial Team, "Business Loan Calculator — Monthly Repayment & Total Interest," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/business-loan-calculator
@misc{wecalculate_business_loan_calculator, title = {Business Loan Calculator — Monthly Repayment & Total Interest}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/business-loan-calculator}}, year = {2026}, note = {TG we-Calculate} }
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