Business loan calculator with fees and amortization
Enter loan amount, fixed rate, term, origination fee and optional extra principal. HitEquals reports scheduled and planned payments, net proceeds, payoff time, interest and every monthly balance.
Inputs used by this calculator
Business Loan Calculator uses the fields below. The starting values reproduce the page example; replace them with values from the same units and time period before using the result.
| Input | Starting example | Accepted value | How it is used |
|---|---|---|---|
| Loan amount (USD) | 150,000 | 1 to 1000000000000 | Supplies the loan amount (usd) quantity used by the published equation or result breakdown. |
| Annual interest rate (%) | 8.5 | 0 to 100 | Supplies the annual interest rate (%) quantity used by the published equation or result breakdown. |
| Loan term (years) | 5 | 1 to 50 | Supplies the loan term (years) quantity used by the published equation or result breakdown. |
| Origination fee (%) | 2 | 0 to 50 | Supplies the origination fee (%) quantity used by the published equation or result breakdown. |
| Extra principal each month (USD) | 0 | 0 to 1000000000 | Supplies the extra principal each month (usd) quantity used by the published equation or result breakdown. |
Business loan payment
A fixed monthly payment amortizes principal over the contracted term. Extra principal shortens the actual schedule when the agreement permits prepayment.
Payment formula
The standard installment formula uses the monthly rate and number of payments.
payment=P×r/(1−(1+r)^−n)Origination fee and proceeds
When a fee is deducted from disbursement, the business receives less cash than the face amount but repays the full principal. The calculator shows both values.
Interest rate and APR
APR is broader than the note rate because eligible fees can affect borrowing cost. The displayed approximate fee-adjusted APR assumes the fee is withheld upfront and scheduled payments continue for the original term.
Compare offers beyond payment
Review collateral, guarantees, variable-rate terms, prepayment charges, covenants and total cash received. SBA-backed products are still originated and serviced by participating lenders.
Build an apples-to-apples loan comparison
Use the same requested cash amount and payoff horizon for each offer. Compare net proceeds after fees, required payment, total interest, modeled payoff month and restrictions such as collateral or prepayment charges. A smaller payment can reflect a longer term rather than a cheaper loan.
Cash-flow coverage and affordability
The calculator measures loan mechanics, not whether the business can safely support the payment. Compare the scheduled payment with conservative operating cash flow and test lower-revenue or higher-cost scenarios before committing capital.
Loan-cost measures
| Measure | Meaning |
|---|---|
| Note rate | Interest applied to balance |
| Origination fee | Upfront financing charge |
| Net proceeds | Cash after modeled fee |
| Total interest | Interest across actual payoff |
Business loan offer checklist
| Term | Why it matters | Calculator treatment |
|---|---|---|
| Amount financed | Principal repaid | Entered loan amount |
| Origination fee | Reduces usable proceeds or raises cost | Modeled as withheld upfront |
| Note rate | Determines monthly interest | Fixed annual rate |
| Term | Changes payment and total interest | Whole years |
| Prepayment terms | May change benefit of extra principal | Must be checked separately |
Frequently asked questions
Does extra payment reduce the scheduled payment?
No. It shortens payoff while the scheduled installment remains unchanged.
Is the origination fee financed?
This model treats it as withheld from proceeds while the full face amount is repaid.
Is APR exact?
It is an approximation for the modeled cash flows; official disclosures and fee treatment can differ.
Does this support balloon loans?
No. It models level monthly amortization.
Are SBA loans made directly by SBA?
Programs vary, and participating lenders generally make and service SBA-guaranteed loans.
Does a longer term make a loan cheaper?
It usually lowers the required payment but can increase total interest.
Does this decide whether my business can afford the loan?
No. Compare payments with conservative cash-flow forecasts and lender requirements.
What to keep in mind
Assumes a fixed rate and monthly payments. Variable rates, balloon payments, prepayment fees, guarantees and lender covenants are excluded.
Results are rounded for display in US format, with money in dollars and cents; CSV exports keep full calculation precision. This is a calculation summary, not an official certificate.