Business Loan Calculator.
A $50,000 business loan at 8 percent over 5 years costs $1,013.82 a month and $10,829.18 in interest. Enter your loan amount, rate and term to see the payment, the total cost and a month-by-month amortization schedule, and test how extra payments shorten the loan.
Fixed-rate loan with equal monthly payments and interest on the reducing balance. An estimate: your lender's figures may differ by fees, day-count and rounding. Runs in your browser.
Have a business? Neweb builds its website in about 90 seconds. Free to start.
Start freeBusiness Loan Calculator is a free online tool from Neweb (neweb.ai) for small businesses, with no sign-up. A $50,000 business loan at 8 percent over 5 years costs $1,013.82 a month and $10,829.18 in interest. Enter your loan amount, rate and term to see the payment, the total cost and a month-by-month amortization schedule, and test how extra payments shorten the loan.
| Cost | Free, no account, no sign-up |
|---|---|
| Built for | small businesses, freelancers and sole proprietors |
| Made by | Neweb, the AI website builder and online presence manager (free plan; paid plans from $9/month billed yearly) |
Facts checked October 2026.
What you'll get.
A real example of what this tool produces. Run it above with your own inputs.
A business loan calculator tells you what a loan will really cost before you sign: the fixed monthly payment, how much of the total is interest, and how the balance falls over time. That matters when the money is for equipment, stock, a fit-out or a new website and the repayment has to come out of monthly cash flow.
Enter the amount, the annual interest rate and the term. You get the monthly payment, total interest, total repaid and a full amortization schedule showing the interest and principal in every payment. Two optional fields go further: an extra monthly payment shows how much sooner the loan is cleared and how much interest you save, and an origination fee shows the cash you actually receive and the total cost of borrowing.
How this differs from the EMI calculator: the EMI calculator is a quick rupee-only tool that returns the monthly instalment and total interest. This one works in any currency and adds the month-by-month amortization table, early-repayment modelling and lender fees that a business borrower needs to compare offers.
The formula
Monthly payment = P × r ÷ (1 − (1 + r)−n), where P is the loan amount, r is the annual rate divided by 12, and n is the number of monthly payments. At a zero rate the payment is simply P ÷ n.
Each month, interest = remaining balance × r, and the rest of the payment (plus any extra) reduces the balance. Interest is highest in the first payment and falls every month, which is why extra payments early in the loan save the most.
How to use the business loan calculator
Enter the loan amount and pick your currency.
Enter the annual interest rate the lender quoted.
Enter the term in years or months.
Optionally add an extra monthly payment to see the interest and time you would save.
Optionally add the lender's origination fee as a percentage of the loan.
Read the monthly payment and totals, then scroll the amortization schedule to see the interest, principal and balance for every month.
Tips for better results
- Compare offers on total cost of borrowing (interest plus fees), not on the monthly payment alone. A longer term lowers the payment and raises the total.
- Ask whether the rate is fixed or variable. This calculator assumes a fixed rate for the whole term.
- Check for early repayment charges before planning extra payments.
- Keep the payment comfortably inside your monthly surplus. The break-even calculator shows the sales needed to cover it.
- If the loan funds growth, estimate the return with the ROI calculator and compare it with the total cost of borrowing.
Example
A real-world walkthrough
A bakery owner borrows $50,000 at 8 percent a year over 5 years to buy an oven and refit the shop. The calculator shows a monthly payment of $1,013.82. Over 60 payments she repays $60,829.18, of which $10,829.18 is interest. The schedule shows the first payment split into $333.33 interest and $680.49 principal, leaving a balance of $49,319.51; by the final payment the interest is only $6.71.
She then tests paying an extra $200 a month. The loan is cleared in 49 months (4 years 1 month) instead of 60, and total interest falls to $8,650.54, a saving of $2,178.64. If the lender also charges a 2 percent origination fee, that is $1,000, so she receives $49,000 in cash and the total cost of borrowing with the extra payments is $9,650.54.
Frequently asked questions
How is a business loan payment calculated?
With the standard amortization formula: payment = P × r ÷ (1 − (1 + r)−n), where P is the amount borrowed, r is the monthly interest rate (annual rate ÷ 12) and n is the number of months. For $50,000 at 8 percent over 60 months, r is 0.6667 percent and the payment is $1,013.82.
What is an amortization schedule?
It is a table listing every payment over the life of the loan, split into the interest and principal portions, with the balance remaining after each one. Early payments are mostly interest; later ones are mostly principal. Lenders, accountants and loan applications often ask for it, and it shows exactly how much you would still owe if you repaid early.
How much interest will I pay on a business loan?
Total interest is the sum of all payments minus the amount borrowed. It rises with the rate and with the term: $50,000 at 8 percent costs $10,829.18 in interest over 5 years. Enter your own figures to see the total and how much an extra monthly payment would save.
Do extra payments reduce the interest?
Yes, provided the lender applies them to principal. Each extra amount lowers the balance that next month's interest is charged on, so the loan ends sooner and costs less. In the example above, $200 extra a month saves $2,178.64 and 11 months. Check your agreement for early repayment fees first.
What is an origination fee?
It is a one-off charge some lenders take for setting up the loan, usually quoted as a percentage of the amount borrowed and often deducted from the money you receive. A 2 percent fee on $50,000 is $1,000. The calculator adds it to the interest to show the total cost of borrowing.
How is this different from the EMI calculator?
Both use the same reducing-balance formula. The EMI calculator is a quick rupee tool that gives the instalment and totals. The business loan calculator works in any currency and adds the full month-by-month schedule, extra payments, payoff date and origination fees.
Your entire online presence, on one subscription.
All industries and more. AI website builder, managed hosting and AI search optimization. Free to start; paid plans from $9/month billed yearly ($19 month-to-month) include a free domain for the first year.