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.
Apply with Merchant Fund Express in 60 seconds. Decisions in 2–4 hours.
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+.
