Looking to secure funding for your business expansion, inventory purchases or daily operations? A Business Loan Calculator can give you quick insights into how much you’ll pay each month, how long it will take to fully repay the loan, and the total interest you’ll incur. By helping you understand the potential costs, this loan estimator tool can guide your decision-making process for loans—from traditional bank financing to alternative lenders—so you can choose the option that best fits your company’s needs.

For guidance on business loan options for your small business, contact a SCORE mentor for free support online or in person. 

This interactive calculator, provided by The Small Business Company, allows you to provide inputs and see a full estimated repayment schedule to plan your capital needs and cash flow.

How to Use This Tool

1. Loan Amount: Enter the total amount of money you want to borrow. This is often referred to as the “principal.”

2. Annual Interest Rate (%): Input the yearly interest rate quoted by your lender (for instance, “5” for 5%). This rate can vary based on factors such as your credit score, industry risk and lender requirements.

3. Loan Term (Years): Specify how many years you have to pay back the loan. Longer terms typically mean lower monthly payments but result in paying more interest over time.

4. Calculate: Click or tap “Calculate” to see your estimated monthly payment and total interest cost. These figures will help you plan your budget and decide whether the loan terms work for your business.

Why Use a Business Loan Calculator?

• Budgeting: Easily assess your monthly financial obligations and determine whether you can comfortably meet payment deadlines.

• Comparison: Compare different loan offers based on varying interest rates and terms to find the most cost-effective solution.

• Forecasting: Gain clarity on how a new loan would affect your cash flow, which is vital for strategic decisions like hiring new staff, expanding your product line or scaling operations.

More About Business Loans

Business loans come in many varieties—term loans, lines of credit, invoice financing, and more. The right choice depends on factors like your current credit standing, the size of your business, and your short- or long-term growth plans. Some common reasons for seeking a business loan include:

• Purchasing or upgrading equipment.

• Investing in new marketing strategies.

• Managing day-to-day operational costs.

• Expanding into new locations or markets.

By planning your finances thoroughly with the help of this Business Loan Calculator, you can make informed decisions that strengthen the financial health of your business. Whether you’re exploring bank loans, SBA loans or alternative financing, knowing your potential monthly payments and total interest helps prevent surprises down the road and keeps your growth trajectory on track.