Business Loan Calculator

How it works

For a term loan, the payment is the level amount that repays the loan with interest over the term, monthly or weekly. Weekly payments are 52 a year, so a 9-month term is 39 weekly payments. Upfront fees do not change the payment, but you pay them on day one, so you effectively borrow less for the same payments.

A factor-rate advance quotes a multiplier instead of a rate: a 1.25 factor on $50,000 means you repay $62,500 in total, whatever the term. Because the whole charge is fixed, the shorter the term, the more expensive the money. The calculator spreads the total into equal payments and finds the APR those payments imply.

The APR is the yearly rate at which your payments exactly repay the cash you actually receive (the amount less the upfront fees). It is found the way Regulation Z's actuarial method prescribes, so a term loan and a factor advance can be compared on one number.

The SBA 7(a) option applies the standard upfront guaranty fee for fiscal year 2027 (loans approved October 1, 2026 to September 30, 2027), from SBA Information Notice 5000-881797. The fee is a percentage of the guaranteed share of the loan, which is 85% of loans up to $150,000 and 75% of larger loans. For terms over 12 months it is 2% up to $150,000, 3% up to $700,000, and above that 3.5% of the guaranteed share up to $1,000,000 plus 3.75% of the share over $1,000,000. For terms of 12 months or less it is 0.25%.

Loans of $700,000 or less to manufacturers (NAICS 31–33), businesses in the food supply chain codes the notice lists, and rural businesses pay a 0% upfront fee in FY 2027. For those, choose Enter the fee amount and enter 0, or enter the fee your lender quotes.

Formula

n = months (monthly) or round(months × 52 ÷ 12) (weekly);  ppy = 12 or 52
term loan:  payment = P × i × (1 + i)^n ÷ ((1 + i)^n − 1),  i = rate ÷ ppy
factor:     total = P × factor;  payment = total ÷ n
fees = P × origination % + guarantee fee
SBA fee (FY 2027), term > 12 months = share × 2% (≤ $150k), 3% (≤ $700k); above $700k, 3.5% of share up to $1M + 3.75% of share over $1M
SBA fee (FY 2027), term ≤ 12 months = share × 0.25%
share = 85% of P (≤ $150k) or 75% of P
APR = ppy × i*, where payment × (1 − (1 + i*)^−n) ÷ i* = P − fees

Example

A $250,000 SBA 7(a) loan at 9.5% for 10 years with monthly payments costs $3,234.94 a month, $138,192.67 in interest over the term. The guaranteed share is 75%, or $187,500, and the FY 2027 standard guaranty fee of 3% on it (SBA Information Notice 5000-881797) is $5,625. Add a 2% origination fee ($5,000) and you pay $10,625 up front, which lifts the APR from 9.5% to 10.54%.

A $50,000 advance at a 1.25 factor repaid weekly over 9 months is 39 payments of $1,602.56, $62,500 in total. The $12,500 charge is an APR of 60.57%. Repaid monthly it would be 9 payments of $6,944.44 and an APR of 56.54%.

Assumptions and limitations

• The interest rate is fixed, payments are equal and made at the end of each period, and there is no odd first period.
• Fees are paid at closing from the proceeds or in cash. If your lender adds them to the loan instead, enter the larger loan amount and the APR will understate slightly.
• A merchant cash advance repaid as a share of daily card sales has no fixed schedule. This treats it as equal payments over the term you enter; if sales run faster, the advance is repaid sooner and the true APR is higher.
• The SBA fee is the FY 2027 standard 7(a) fee from SBA Information Notice 5000-881797, for loans approved October 1, 2026 to September 30, 2027. It does not apply the 0% fee for manufacturers, food-supply-chain and rural businesses on loans up to $700,000, the $0 fee on SBA Express loans to veteran-owned businesses, or the separate schedules for Export Working Capital and Working Capital Pilot loans; for those, choose Enter the fee amount. Other costs such as packaging fees, closing costs and prepayment penalties are not included.
• This is an estimate for planning, not financial, tax or legal advice. Compare it with the lender's own disclosure before you sign.

Frequently asked questions