How to calculate business loan payments?

Most business loans use an amortization formula. Our calculator determines your monthly payment based on principal, annual interest rate (APR), and the loan term in months/years.

What is the average SBA loan rate?

SBA 7(a) loan rates are typically based on the Prime Rate plus a markup. As of 2024, rates typically range from 11% to 13%, but this fluctuates with the Fed rate.

Does this calculator work for equipment financing?

Yes. Equipment loans are typically simple term loans. Just enter the equipment cost as the 'Loan Amount' and the repayment duration as the 'Term'.

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Capital Engine

Business Loan Forecaster

Name: Amsome
Address: Colombo, Colombo, 00100, LK
Telephone: +94 715 828 422

Analyze your funding options. Calculate monthly payments, total interest costs, and generate a full amortization schedule.

Loan Configuration

Configure your business financing terms.

Loan Amount$50000.00

Interest Rate (APR)7.5%

Term (Months)60 months

Amortization Logic

Understanding how your loan amortizes is key to managing cash flow. In the early years of a term loan, the majority of your payment goes toward interest, not principal. This "front-loaded" cost structure significantly impacts your true cost of capital.

APR Accuracy

Includes all closing fees and points, giving you a truer measure of the loan's cost than a simple flat interest rate.

Term Velocity

Extending your loan term lowers monthly cash burn but drastically increases the total cumulative interest paid.

Funding Formula

Lenders use the Debt Service Coverage Ratio (DSCR) to measure your ability to pay. Aim for a DSCR of 1.25x or higher for favorable institution funding.

Principal

Initial Funding

Cost

Total Interest

Cash Flow

Monthly EMI