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Business loan payment calculator
Monthly payment, total interest, and the effective APR once fees come out of the proceeds — which is the number that actually compares two offers.
The effective APR is the rate at which the present value of your payments equals what actually lands in your bank account. If fees come out of the proceeds, it is always higher than the quoted rate — that gap is the number lenders would prefer you not compute.
Why the effective APR matters more than the quoted rate
Two offers at 11% are not the same loan if one takes $7,000 out of the proceeds and the other does not. You repay on the full amount while only the net arrives, and that gap is real cost the quoted rate hides. Put both offers through this and compare the last box.
What to do with the payment number
Take it to the affordability calculator and check whether your cash flow covers it at 1.25x. A payment you can technically make is not the same as a payment a lender will approve, and neither is the same as a payment your business should carry.
Assumptions
- Standard monthly amortization with equal payments.
- Fees are assumed deducted from proceeds at funding, not paid separately.
- No prepayment, no rate changes, no balloon. For a variable-rate loan, run it again two points higher to see what a rate rise does.
- This is an estimate for planning. Your lender's amortization schedule governs.