SILDIL

Business Loan Calculator

Calculate business loan payments, total interest, effective APR, and a full amortization schedule. Analyze DSCR and cash flow, estimate borrowing capacity, compare loan options, and explore rate and term scenarios — in nine major currencies.

Loan Details

$
$5k $5M
%
1% 25%
1 yr 25 yrs
$
$0 $10k
$
$0 $20k
$
$0 $10k
$
$0 $1M
0 60
$
$0 $1M
$
$0 $20k
$
$0 $50k

Business Loan Summary

Payment
$3,960
Total Interest
$37,614
Total Fees
$4,000
Total Financing Cost
$41,614
Total Amount Repaid
$241,614
Payoff Date
Sep 2031

Loan Cost Breakdown

Principal
$200,000
Interest
$37,614
Fees
$4,000
Total
$241,614

Effective APR

Estimated Effective APR
7.85%

Estimated annualized borrowing cost based on the loan's actual cash flows and applicable upfront fees. The effective rate can differ from the stated interest rate.

This is an estimate based on the assumptions entered and may differ from a lender's disclosed APR, which follows its own methodology.

Payment Breakdown

Principal and interest paid each period, and the loan balance remaining.

Principal Paid Interest Paid Remaining Balance

Amortization Schedule

#DatePaymentPrincipalInterestBalance

Can the Business Afford This Loan?

Optional — enter your business financials to see DSCR and cash flow after this loan. This is a modeled estimate; actual lender requirements vary.

Business Revenue

$
$0 $2M

Business Expenses

$
$0 $2M
$
$0 $500k

Cash Flow Available for Debt Service

Cash flow before any debt payments
Existing Debt Service
—
New Loan Payment
—
Total Debt Service
—
Cash Flow After New Loan
—
DSCR

DSCR = cash flow available before any debt payments ÷ total debt service (existing + new loan). Actual lender requirements vary.

Cash-Flow Impact

Before New Loan — Available Cash Flow
—
After New Loan — Remaining Cash Flow
—
Annual Cash Flow Reduction
—

How Much Can the Business Afford to Borrow?

Reverse the calculation — solve for the maximum loan amount instead of the payment.

$
$100 $100k
%
1% 25%
1 yr 25 yrs
Estimated Monthly Payment
—
Total Interest
—
Estimated Maximum Loan
—

Compare Two Loan Options

See which option has the lower payment and which costs less overall.

Loan A

$
$5k $5M
%
1% 25%
1 25

Loan B

$
$5k $5M
%
1% 25%
1 25
Loan ALoan B
Monthly Payment$3,960$3,117
Total Interest$37,614$61,848
Total Repayment$241,614$265,848
Lower monthly payment: Loan B
Lower total interest: Loan A

How Rate and Term Affect Your Payment

Based on your current loan amount, using standard amortization (fees and extra payments not included).

Interest-Rate Sensitivity

RatePaymentΔ vs CurrentTotal Interest
5%$3,774$26,455
6%$3,867$31,994
7%$3,960$37,614
8%$4,055$43,317
9%$4,152$49,100

Loan-Term Sensitivity

TermPaymentΔ vs CurrentTotal Interest
3 yrs$6,175$22,315
5 yrs$3,960$37,614
7 yrs$3,019$53,557
10 yrs$2,322$78,660

What If You Pay Extra?

Uses the extra-payment fields under Advanced Options above.

Original Payoff
—
New Payoff
—
Payments Saved
—
Interest Saved
—

Enter an extra payment under Advanced Options to see potential savings.

Will the Loan-Funded Investment Pay for Itself?

Optional — for loans funding expansion, equipment, or new revenue. Estimates the time to recover an upfront investment from the additional monthly cash flow it generates.

$
$0 $500k
$
$0 $500k
$
$0 $5M
Monthly Net Benefit Before Loan
—
− Loan Payment
—
= Additional Monthly Cash Flow
—
Estimated Investment Recovery Period
—

"Recovery period" means the time to recoup your upfront investment from the additional cash flow (Upfront investment ÷ additional monthly cash flow). If this investment is entirely loan-financed, that upfront figure represents the project cost, not necessarily cash you personally put in — adjust it if your own contribution differs. This is an estimate based on the figures you enter, not a guarantee.

Worked Example: $200,000 Business Loan

A business borrows $200,000 at 7% over 5 years, paying monthly, with a 1.5% origination fee plus $1,000 in application and closing fees.

The resulting monthly payment is $3,960, with $37,614 in total interest and $4,000 in fees — a total financing cost of $41,614 on top of the principal.

Because of the upfront fees, the effective APR comes to 7.85% — higher than the 7% stated rate — which is the more complete measure of what this financing actually costs the business.

How to Calculate a Business Loan Payment and Total Cost

Step-by-step method to see a business loan's payment, total interest, fees, effective APR, and DSCR affordability.

  1. 1. Enter loan details: Input the loan amount, interest rate, term, and payment frequency.
  2. 2. Add fees and optional terms: Enter origination and closing fees, and optionally a down payment, balloon, or interest-only period under Advanced Options.
  3. 3. Review the summary: Check the monthly payment, total interest, total fees, effective APR, and payoff date.
  4. 4. Check affordability: Enter business revenue and expenses to see DSCR and how much cash remains after the loan payment.

Understanding Your Business Loan's Real Cost

A business loan's stated interest rate only tells part of the story. Origination fees, application fees, and closing costs are paid up front but reduce the cash your business actually receives, which is why the effective APR — calculated from the loan's real cash-flow stream — is the more accurate measure of what the financing truly costs.

Beyond the payment itself, lenders and business owners alike look at the Debt Service Coverage Ratio (DSCR) to judge whether cash flow comfortably covers the obligation. A loan that looks affordable on a monthly-payment basis can still strain a business if DSCR is thin once existing debt is included.

This calculator ties those pieces together in one place: payment and amortization, effective APR, DSCR affordability, a reverse "maximum loan" calculation, side-by-side comparison of two offers, and rate/term sensitivity — so you can evaluate a real financing decision rather than just a single number.

The Formulas Behind Each Metric

  • Payment = solved from Principal, Rate per period, Number of periods (and any balloon future value)
  • DSCR = Cash Flow Available Before Any Debt Payments ÷ Total Debt Service
  • Effective APR = annualized internal rate of return on (net loan proceeds after fees) vs. (scheduled payments)
  • Maximum Loan (by payment) = present value of the maximum payment stream at the given rate and term
  • Investment Recovery Months = Upfront Investment ÷ (Additional Revenue − Additional Expenses − Loan Payment)

Frequently Asked Questions

Q: What is the difference between my interest rate and the effective APR?

The interest rate is the stated annual rate used to calculate interest. The effective APR is the annualized cost of the loan once upfront fees (origination, application, closing costs) are factored into the actual cash you receive versus what you repay. It is calculated from the real cash-flow stream, so it is almost always higher than the stated rate whenever fees apply. This is an estimate based on the assumptions entered and may differ from a lender's disclosed APR, which follows its own methodology.

Q: What is DSCR and what counts as a healthy ratio?

The Debt Service Coverage Ratio (DSCR) divides cash flow available before any debt payments by total debt service (existing plus the new loan). A DSCR of 1.0x means income exactly covers debt payments; most lenders look for at least 1.20-1.25x. This calculator's DSCR is a modeled estimate — actual lender requirements and underwriting criteria vary.

Q: How does a balloon payment work?

A balloon structure sets regular payments as if the loan amortized over a longer schedule, but the remaining balance comes due in full at the end of the stated term rather than being paid down to zero. This calculator shows the balloon amount separately so it is never mistaken for part of the regular payment.

Q: What happens during an interest-only period?

During an interest-only period, payments cover only accrued interest and the principal balance does not decrease. Once that period ends, the payment recalculates to amortize the full remaining balance over the remaining term, which means the payment increases at that point.

Q: How does a variable rate change my payment?

With a variable rate schedule, this calculator re-amortizes your remaining balance over your remaining term every time the rate changes, which is the standard convention for most adjustable-rate business loans: the term stays fixed and the payment resets.

Q: How is the maximum affordable loan calculated?

You can solve in either direction: enter a maximum monthly payment (and rate/term) to see the loan amount it supports, or enter your available cash flow and a target DSCR to see the maximum debt service — and corresponding loan amount — that DSCR allows.

Q: Does extra payments change my effective APR?

No. Effective APR is calculated from the loan's baseline scheduled payments and fees, since it reflects the intrinsic cost of the loan itself. Extra payments reduce total interest and shorten the payoff, which are shown separately in the extra-payment savings section.

Q: Can I use this for an SBA loan, equipment financing, or a line of credit?

This calculator models a standard amortizing term loan, which is a reasonable estimate for SBA term loans and equipment financing. A business line of credit does not amortize the same way, since it revolves — the standard-loan math here should be treated as an approximation for that product, not an exact model.

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