Business Loan Calculator USA — Calculate Monthly SBA and Term Loan Payments

Business Loan Calculator

How This Business Loan Calculator Works

Our business loan calculator computes your monthly payment using the standard amortization formula given three inputs: loan amount, annual interest rate (APR), and term in months. The output includes monthly payment, total interest paid over the loan life, total cost (principal + interest), and a year-by-year amortization breakdown. Unlike consumer loans, US business loans have wide rate dispersion: SBA 7(a) loans price at Prime + 2.25% to Prime + 4.75% (roughly 10.0–12.5% in 2026), SBA 504 loans for real estate at fixed 6.5–7.5%, conventional bank term loans at 7–11%, online lenders (OnDeck, Bluevine, Funding Circle) at 8–35%, and Merchant Cash Advances at factor rates equating to 40–150% APR. Always compute APR, not factor rate or interest-only — MCA quotes deliberately obscure true cost.

SBA 7(a) Loan — The Cheapest Small Business Loan Most Owners Qualify For

The SBA 7(a) is the flagship Small Business Administration program: loans up to $5 million, terms up to 10 years for working capital and 25 years for real estate, with the SBA guaranteeing 75–85% of the loan to the bank. The guarantee means banks lend to businesses they would otherwise reject. Rates are capped at Prime + 2.25% (loans over $350k) to Prime + 4.75% (loans under $50k), so 2026 rates are roughly 10–12.5%. Closing fees (called the SBA Guaranty Fee) range from 0% on loans under $1M (waived for under $1M through SBA fee relief) to 3.75% on the guaranteed portion of loans over $1M. Down payment requirement: typically 10–20% equity injection. Approval timeline: 60–120 days through traditional banks, 30–45 days through Preferred Lender Program (PLP) banks like Live Oak, Huntington, Newtek, and Wells Fargo.

SBA 504 vs SBA 7(a) — Which Is Right For Real Estate

For owner-occupied commercial real estate or heavy machinery, the SBA 504 is usually cheaper than the 7(a). Structure: 50% from a bank at conventional rates, 40% from a Certified Development Company (CDC) at fixed below-market rates (around 6.5–7.5% in 2026), and 10% borrower equity. The 504 is fully fixed-rate for 25 years (real estate) or 10 years (equipment) — the 7(a) is mostly variable. Use 504 for: purchasing your business location, ground-up construction, large equipment over $250k. Use 7(a) for: working capital, inventory, business acquisitions, partner buyouts, refinancing existing business debt, or smaller real estate purchases under $500k where 504 closing costs (~3% of project) are not justified. 504 closing takes 90–150 days, longer than 7(a).

Online Lenders, Lines of Credit, and Term Loans Compared

Online term loans (OnDeck, Funding Circle, Bluevine, Lendio): 6 months to 5 years, $5k–$500k, APRs 8–45%, funded in 1–7 days vs SBA’s 30–120 days. Best for businesses with under 2 years history that cannot qualify for SBA, or owners who need cash this week. Lines of credit (Bluevine, Wells Fargo, Bank of America): revolving credit up to $250k, draw only what you need, pay interest only on outstanding balance. Best for managing cash-flow gaps and seasonal inventory. Equipment financing: secured by the equipment itself, 80–100% financing, 2–7 year terms, 6–18% APR — best for purchases over $25k where the equipment is the collateral. Invoice factoring: sell unpaid invoices for 80–95% of face value, factor takes 1–4% per month — expensive but no debt on balance sheet.

Avoid These Predatory Products — MCAs and "Daily Debit" Loans

Merchant Cash Advances (MCAs) are not technically loans — they are a sale of future receivables. A typical MCA: receive $50,000 today, repay $65,000 over 6 months via daily ACH debits of ~$540. The "factor rate" of 1.30 sounds modest, but the effective APR is 80–150%. Avoid MCAs unless you have zero alternatives and a clear, short-term, high-margin use case (a one-time inventory buy with a guaranteed sale). Daily debit term loans (some online lenders) charge "interest" computed using simple interest on the original principal, not the declining balance — meaning the effective APR is roughly double the quoted rate. Always demand the APR in writing and run it through this calculator to verify. The Truth-in-Lending Act does not cover business loans, so disclosure is voluntary.

How to Qualify For The Best Business Loan Rates

Lenders price your loan based on six factors: (1) Personal FICO of the principal owners — 700+ for best rates, 680+ for SBA, 600+ for online lenders; (2) Business credit score (Dun & Bradstreet PAYDEX, Experian Business) — pay vendors early to build to 80+; (3) Time in business — 2+ years opens conventional/SBA, under 2 years pushes you to online lenders at higher rates; (4) Annual revenue — most lenders want at least $100k for term loans, $250k for SBA; (5) Debt-Service Coverage Ratio (DSCR) — your business net income (after rent and salaries) should be at least 1.25x the new loan payment; (6) Collateral and personal guarantee — the SBA always requires a personal guarantee from any owner with 20%+ equity. Before applying, get your most recent two years of business tax returns, P&L, balance sheet, and personal financials in order — half of all loan denials are paperwork issues, not credit issues.