Business Loan Repayment Calculator
Turn any term-loan offer into the numbers that matter: monthly payment, total interest, and the month your business is free of it.
What your business loan really costs
Lenders sell payments; businesses should buy total cost. This business loan repayment calculator turns any fixed-term offer — amount, rate, term — into the three numbers that matter for your cash flow: the monthly payment you’ll carry, the total interest you’ll pay, and the date the loan disappears from your books.
Fitting the payment to your cash flow
A healthy rule of thumb is that debt service should fit comfortably inside your monthly operating margin — most lenders look for a debt service coverage ratio (DSCR) of 1.25 or higher, meaning $1.25 of net operating income per $1 of loan payment. If the payment this calculator shows would push you below that, consider a smaller amount or a longer term — and price the extra interest that the longer term costs.
Watch out for these when comparing offers
- Factor rates quoted instead of APR — always convert before comparing.
- Origination fees— a 3% fee on a $100k loan is $3,000 of cost the payment doesn’t show.
- Prepayment penalties — they can erase the benefit of paying early.
- Personal guarantees — business debt that can follow you home.
If you’re also carrying personal debts, keeping both plans straight is easier with a single tracker — our free planner handles any mix of debts with one month-by-month schedule.
Frequently asked questions
What kinds of business loans does this calculator cover?
Any term loan with fixed monthly payments: SBA 7(a) loans, bank term loans, equipment financing, or online lender term loans. It does not model daily-payment merchant cash advances or revolving lines of credit, which price debt very differently.
What are typical business loan terms?
Equipment loans often run 3–7 years, working-capital term loans 1–5 years, and SBA real-estate loans up to 25 years. Longer terms lower the payment but raise total interest — test both directions in the calculator.
What is a factor rate, and how is it different from APR?
Some lenders quote a factor rate (like 1.2) instead of an APR: you repay the amount times the factor regardless of speed. A 1.2 factor repaid over 6 months is roughly a 70%+ APR. This calculator uses APR, the comparable measure — ask any factor-rate lender for the APR equivalent.
Does repaying a business loan early save money?
With true amortizing loans, yes — interest accrues on the remaining balance, so early principal payments cut cost. But some business loans have prepayment penalties or fixed total charges; check your agreement before accelerating.
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Calculations assume monthly compounding (APR ÷ 12) and fixed minimum payments. Eagle Debt Payoff is a planning tool, not financial advice.