Business loan calculator: estimate your monthly payment, total cost & APR

A business loan calculator estimates your monthly payment, total interest, and true APR before you apply. Enter the loan amount, interest rate, repayment term, and any fees, and it returns what you'll pay each month and what the financing costs over its full term. As a financing leader for growing SMBs, we've put together this easy-to-use calculator to help your business understand different bank loan scenarios, and below we break down how they compare to Wayflyer's offering.

How to use this calculator (traditional lenders)

Start with a few inputs and read four outputs.

Step 1: Enter your loan details. Add the amount you want to borrow, the interest rate or APR a lender has quoted, and the repayment term in months or years. If you know the origination or documentation fees, enter those too so the estimate reflects the real cost.

Step 2: Review your results. The calculator shows your monthly payment, the total interest you'll pay, the total amount repaid, and the true APR once fees are included. The true APR is the number to compare across offers, since two loans with the same headline rate can cost very different amounts.

Why would you choose Wayflyer financing over traditional lenders?

Wayflyer gives consumer brands fast, flexible financing without the equity dilution or rigid repayments that come with a traditional bank loan. Crucially, we underwrite your business performance, not your credit history, so your offer reflects how your business is actually trading rather than a personal credit score. You can access up to $20mn in as little as 24 hours, with repayments tied to your monthly revenue rather than a fixed monthly bill.

Bank loans struggle here. They take weeks or months to approve, lean on your credit history and personal guarantees, demand heavy paperwork, and lock you into the same repayment whether you had a record month or a slow one.

Wayflyer flexes with your business instead. When sales climb, you repay faster. When they dip, your repayments ease off. You also keep full ownership, with no board seat to hand over and no equity on the table. Click here to get your financing offer with Wayflyer.

Worked examples for common loan amounts

These use representative APRs and terms for mid-market business loans, drawn from rates published by Bankrate and the Federal Reserve. Each total cost assumes a 2% origination fee.

What is the monthly payment on a $50,000 business loan?

At 11% APR over 5 years, a $50,000 loan costs about $1,087 a month. You'll pay roughly $15,238 in interest over the term, plus a $1,000 origination fee.

How much would a $100,000 business loan cost a month?

At 9.5% APR over 7 years, a $100,000 loan runs about $1,634 a month, with roughly $37,300 in total interest.

What does a $250,000 business loan cost?

At 9.5% APR over 5 years, a $250,000 loan is about $5,250 a month, with around $65,000 in total interest.

What does a $500,000 business loan cost?

At 8% APR over 7 years, a $500,000 loan costs about $7,793 a month, with roughly $154,621 in total interest.

What is the payment on a $1,000,000 business loan?

At 7% APR over 10 years, a $1,000,000 loan is about $11,610 a month, with around $393,239 in total interest.

What does financing $100,000 with Wayflyer cost?

Wayflyer prices financing as one flat fee, not interest that builds up over years. On a $100,000 advance at a 7% flat fee, the total cost is $7,000, so you repay $107,000. There's no separate origination fee and no compounding on top.

What changes is how you repay. Instead of a fixed monthly payment, you repay a set share of your revenue over roughly 6 months, so the amount eases off in slow months and picks up when sales climb. If sales came in evenly, that's about $17,833 a month, but the repayment flexes with your cash flow rather than staying fixed.

Calculating your business loan payment: the formula

Every fixed-rate term loan uses the same amortization formula:

M = P × [r(1 + r)^n] / [(1 + r)^n − 1]

P is the principal, r is the monthly interest rate (your APR divided by 12), and n is the number of monthly payments. Take the $50,000 example at 11% APR over 5 years. The monthly rate is 0.11 ÷ 12, or about 0.00917, and the term is 60 payments. Run those through the formula and you get a monthly payment of about $1,087.

You don't have to do this by hand. In Excel or Google Sheets, the PMT() function runs the same calculation: =PMT(0.11/12, 60, -50000) returns the monthly payment. The calculator above does it for you and adds fees to show your true APR.

APR vs interest rate vs factor rate

These three numbers are easy to confuse, and lenders don't always make the difference clear.

The interest rate is the cost of borrowing the principal, shown as a yearly percentage. The APR includes the interest rate plus most fees, so it reflects the real annual cost. A $100,000 loan at 9.5% interest with a 2% origination fee works out to roughly 10.2% APR once the fee is spread over the term. When you compare offers, compare APRs, not headline rates.

A factor rate is different math. Merchant cash advances and some short-term products quote a factor like 1.40 instead of a percentage. A 1.40 factor on a $100,000 advance means you repay $140,000, no matter how quickly you pay it back. Because repayment is compressed into months rather than years, a 1.40 factor on a 12-month advance translates to an APR of roughly 70%. Bankrate explains how factor rates convert to APR in more detail. Always ask a lender for the APR-equivalent of any factor rate before signing.

Why monthly-payment calculators don't work for MCAs or RBF

A standard calculator assumes a fixed monthly payment over a set term. Merchant cash advances and revenue-based financing don't work that way, so the monthly-payment math breaks down.

Take a $100,000 need across three structures:

With a term loan, your payment is the same every month. With revenue-based financing, you repay a percentage of sales, so the amount falls when revenue dips and rises when it climbs. There's no fixed monthly figure for a calculator to return. A merchant cash advance has no APR at all until you convert the factor rate, which is why the cost can surprise borrowers. For day-to-day cash needs, compare options on our small business loans page rather than relying on a monthly-payment estimate.

Types of business loans

Here's how the main types of business financing differ. The calculator models fixed-rate, fixed-term loans most directly. Revolving credit and revenue-based financing are repaid differently, so treat any monthly figure for them as a rough guide at best.

Term loans

A lump sum repaid in fixed monthly installments over one to ten years. The most common form of business financing, and the one this calculator models most directly.

SBA 7(a) loans

Government-backed loans up to $5 million for working capital, expansion, or acquisitions. Rates are competitive, though approval and funding can take weeks. See SBA.gov for current program terms.

SBA 504 loans

Long-term, fixed-rate financing for major fixed assets like real estate and heavy equipment. Structured through a lender alongside a Certified Development Company.

Business lines of credit

Revolving credit you draw on as needed and repay over time. Interest applies only to what you use, so a fixed-payment calculator gives only a rough guide.

Equipment financing

A loan secured by the equipment you're buying. Terms usually match the useful life of the asset, and the equipment itself serves as collateral.

Commercial real estate loans

Financing to buy or refinance business property. Terms run long, often 10 to 25 years, with the property as security.

Working capital loans

Short-term financing that covers day-to-day operations, payroll, or inventory. Explore options on our small business loans page.

Revenue-based financing (Wayflyer)

Funding priced as one flat fee and repaid as a share of your revenue rather than a fixed monthly payment, so the APR-based calculator above doesn't apply. Built for consumer brands with steady sales but uneven months. Learn how it works in our guide to revenue-based financing.

What affects your business loan payment

Six factors move your monthly payment and total cost:

• Loan amount. More principal means a higher payment and more interest over the term.
• APR. The all-in annual cost. Even a one-point difference adds up over several years.
• Term length. A longer term lowers the monthly payment but increases total interest.
• Fees. Origination, documentation, and prepayment fees raise your true APR above the headline rate.
• Interest type. A fixed rate keeps payments steady. A variable rate can rise or fall with the market.
• Personal guarantee. Many lenders require one. Under SBA rules, anyone owning 20% or more of the business must provide a personal guarantee.

Frequently asked questions

Do you need 20% down for a business loan?

Not always. SBA loans typically ask for 10% to 30% down, and conventional loans often want 10% to 20%. Unsecured loans, lines of credit, and revenue-based financing usually need nothing down.

How much income do I need for a $500,000 business loan?

Most lenders look for a debt-service coverage ratio of at least 1.25x. On a $500,000 loan at 9% APR over 10 years (about $6,335 a month), that means roughly $96,000 a year in net operating income.

How hard is it to get a $1,000,000 business loan?

You'll generally need a FICO score of 650 or higher, two or more years in business, at least $250,000 in annual revenue, and collateral or a personal guarantee. SBA-backed and asset-based lenders are the most common routes.

Is it legal to charge 30% interest on a business loan?

In most US states, yes. Business-purpose loans are usually exempt from the usury caps that apply to consumer credit, which is why MCA factor rates can reach 60% to 100%+ APR. Always compare the true APR before signing.

What is the 20% rule for SBA loans?

Anyone who owns 20% or more of the business must provide a personal guarantee on an SBA loan. The rule can extend to spouses and minor children of those owners. See SBA.gov for the full requirement.