Business loan payment calculator
Sterling's take Two numbers matter on a loan: the payment you'll make in a slow month and the total you'll pay by the end. This gives you both.
Monthly payment
$4,992.41
- Number of payments
- 24
- Total repaid
- $119,817.84
- Total interest
- $19,817.84
- Interest per $1 borrowed
- $0.20
- Same deal as a factor rate
- 1.198
Level payments on an amortising loan. Fees aren't included: add them with the offer checker.
Enter the amount, the APR and the term, choose how often you pay, and the calculator shows the payment, the number of payments, the total repaid and the total interest. Use it to check a quote, to compare terms, or to test whether a payment fits a slow month before you apply.
What each input means
- Amount borrowed. The principal, the figure interest is charged on.
- APR. The annual rate on the offer. If you have a factor rate rather than an APR, use the MCA APR calculator.
- Term. Months until the loan is fully repaid.
- Frequency. Daily, weekly or monthly payments.
The method
This is a standard amortizing loan: level payments, each covering that period's interest plus some principal.
- Number of payments = months × 21 for daily (business days), months × 52 ÷ 12 for weekly, or months for monthly, rounded to whole payments.
- Periodic rate = APR ÷ 252 (daily), ÷ 52 (weekly) or ÷ 12 (monthly).
- Payment = amount × rate ÷ (1 − (1 + rate)^−payments).
- Total repaid = payment × number of payments; total interest = total repaid − amount.
Worked example
$100,000 at 18% APR over 24 months, monthly: $4,992.41 a month, $119,817.84 in total and $19,817.84 of interest. Interest per $1 borrowed is about $0.20, and the same deal as a factor rate is about 1.198.
Change one thing at a time:
| $100,000 at 18% | Payment | Total interest |
|---|---|---|
| 12 months, monthly | $9,168.00 | $10,015.99 |
| 24 months, monthly | $4,992.41 | $19,817.84 |
| 36 months, monthly | $3,615.24 | $30,148.62 |
| 24 months, weekly | $1,146.62 a week | $19,248.80 |
Shorter terms cost less in total but need a bigger payment. Pick the shortest term whose payment you can still make in a slow month.
Limitations
- It assumes a fixed rate. On a variable-rate loan, the payment moves with the benchmark.
- It ignores fees, prepayment penalties and anything charged later. Run a real offer through the offer checker to include up-front fees.
- Some short-term lenders charge a fixed total cost whatever the schedule. In that case the total on the offer is the figure to trust.
- It's a planning tool, not a quote. See term loans for how the product works.
Ready for a straight answer?
Two minutes of questions. One funding specialist. No impact on your credit score.
Questions owners ask
Can I use this for a merchant cash advance?
Not directly, because an advance is priced with a factor rate, not an APR. Use the factor rate converter instead; it works out the APR for you.
Why do weekly payments cost slightly less in total than monthly?
Each payment reduces the balance sooner, so less interest builds up. The difference is usually small; the bigger question is whether weekly debits suit your cash flow.
Does this include fees?
No. If fees are deducted from the loan, you receive less than you borrow, so the real cost is higher. Use the offer checker to include them.
What does 'same deal as a factor rate' mean?
Total repaid divided by the amount borrowed. It lets you line a loan up against an advance quoted as a factor rate.