Use this calculator to estimate the monthly payment on a business term loan. Enter the amount, the annual rate (APR), and the term in months — it returns your monthly payment, total interest, and total cost. Amounts are estimates for planning; your real offer depends on underwriting.
Key takeaways
- Amortized term loans split each payment between interest and principal.
- Shorter terms cost more monthly but less in total interest.
- APR is not the same as an MCA factor rate — use the right tool.
- Estimates only; real terms depend on underwriting.
- Funding from $10,000, decisions in 24-48 hours.
How the calculation works
A term loan is amortized: each payment covers interest on the remaining balance plus a slice of principal. The formula is M = P · r · (1+r)^n / ((1+r)^n − 1), where P is the amount, r is the monthly rate (APR ÷ 12), and n is the number of months. Early payments are mostly interest; later payments are mostly principal.
Example
For example, a $50,000 loan at a 28% APR over 24 months works out to roughly a $2,750 monthly payment and about $16,000 in total interest — a total cost near $66,000. Lowering the term raises the monthly payment but cuts total interest; extending it does the opposite.
What this doesn't include
This estimates an amortizing loan. Merchant cash advances and revenue-based financing don't use APR the same way — they use a factor rate and a fixed payback, so use the MCA calculator for those. Origination or platform fees, if any, add to your real cost.
Frequently asked questions
Is this my exact payment?
No — it's an estimate for planning. Your actual payment depends on the lender's underwriting, the final rate, and any fees.
What APR should I enter?
Use the rate from your offer. For alternative/short-term funding, effective rates are often higher than bank rates; enter what you're quoted.
Does a longer term save money?
A longer term lowers the monthly payment but usually increases total interest paid. A shorter term costs more per month but less overall.
Can I get funded with bad credit?
Often yes — many funders weigh your revenue and bank deposits more than your FICO, and consider scores of 500+.
