Business loan calculator
Business loan calculator: monthly payment, total cost and APR for every option
One calculator, five products. Pick the option, set the amount, term and rate, and see what it costs in the shape that product actually repays: monthly, weekly or per invoice.
Term loan: a fixed monthly payment
Move the sliders to explore. These are illustrative figures, not an offer.
Estimated monthly payment
$4,896
- Amount
- $100,000
- Total interest
- $17,511
- Total of payments
- $117,511
Illustrative estimate, not an offer of credit. Your advisor confirms your real rate and terms.
Illustrative estimates, not an offer of credit. Actual rates, fees and terms depend on the lender and your business profile. Relief Capital is an independent consultancy, not a lender.
How to read the result
Each product repays in a different shape, so the calculator shows the number that product actually produces. A term loan and equipment financing show a fixed monthly payment, total interest and total of payments. A line of credit shows the payment on the balance you draw, not on the limit. A merchant cash advance shows the total payback, the weekly or daily remittance, and the APR solved from that schedule, because the factor rate hides it. Invoice factoring shows cash advanced now, the reserve, the fee and the net proceeds. Compare products on total cost over the time you will actually hold the money, not on the headline rate.
A $100,000 loan, five ways
All illustrative, at the site's calculator defaults:
- SBA 7(a), 11 percent over ten years: about $1,378 a month, about $65,300 of interest. The lowest payment and the slowest approval.
- Term loan, 16 percent over three years: about $3,516 a month, about $26,600 of interest. More per month, far less in total.
- Business line of credit, 14 percent, interest only while drawn: about $1,167 a month on $100,000 drawn, and nothing on the undrawn balance.
- Equipment financing, 12 percent over five years: about $2,224 a month, about $33,400 of interest, with the machine as collateral.
- Merchant cash advance, 1.30 factor over twelve months: $130,000 back at about $2,500 a week, about 54 percent APR from the schedule.
- Invoice factoring on a $100,000 invoice, 85 percent advance, 3 percent a month for two months: $85,000 now, a $6,000 fee, $94,000 net.
APR vs factor rate
A rate tells you the cost of money per year. A factor rate tells you the total you will repay and nothing about time, which is why a 1.30 factor reads as 30 percent and behaves like 54 percent a year over twelve months, or 72 percent over nine. Whenever an offer quotes a factor, ask for the term and the remittance schedule, and convert it before comparing. The merchant cash advance tab does that automatically.
Calculator questions
Are business loan payments tax deductible?
The interest portion is generally deductible as a business expense in the United States; the principal is not. Fees are usually deductible too, sometimes over the life of the loan. Factor-rate products are treated differently depending on how the agreement is structured. Confirm with your accountant; this is educational, not tax advice.
When do business loan payments start?
Most term loans, SBA loans and equipment loans start monthly payments about 30 days after funding. A line of credit charges interest from the day you draw. Merchant cash advances and some short-term products pull daily or weekly from the first week. The contract sets the schedule; read it before you sign.
What rate should I use?
Start with the default on each tab, which is the middle of the indicative range for that product on this site, then move it toward the low end for an established business with strong credit and the high end for a newer business or a weaker file. The lender's real quote is the only number that counts; the calculator tells you what to expect.
How do I compare a factor rate with an APR?
Convert the factor to an annual rate over the months you will actually take to repay. The merchant cash advance tab does it from the schedule: amount, factor, term and remittance frequency. If the result is higher than a loan you would qualify for, the speed is what you are paying for.
How much can I borrow?
The calculator does not decide that; lenders do, on cash flow, time in business, credit and collateral. As a rule of thumb, unsecured loans and lines land between 10 and 20 percent of annual revenue, equipment financing follows the asset's value, and SBA loans are sized against cash flow coverage. The guide on how to get a business loan covers the sizing.