How Does a Business Loan Calculator Work?

A business loan calculator estimates the regular repayment required to repay a loan over a specified period. The calculation uses the loan amount, annual interest rate and loan term.

In this formula, P is the loan principal, r is the monthly interest rate and n is the total number of monthly repayments.

Example

For a hypothetical business loan of $100,000 at 8% annual interest over 5 years, the calculator estimates the monthly repayment and total interest based on those assumptions.

What Can a Business Loan Be Used For?

Depending on the lender and loan product, businesses may borrow money for purposes such as equipment, working capital, expansion, vehicles, inventory or other business expenses.

Important Before Applying

Actual business loan costs can include application fees, establishment fees, ongoing fees, security requirements and other charges. The interest rate offered by a lender may also differ from the rate entered into this calculator.

This calculator is an estimate only and does not guarantee loan approval or eligibility. Compare the interest rate, fees, loan term and other conditions before applying.