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Small Business Loan Payment

Estimate monthly payments and total interest on a business loan.

About Small Business Loan Payment

Equal monthly payments amortize the loan so interest is paid on the declining balance, which is why early payments are mostly interest. The quoted rate hides how much financing really costs, so checking the total interest over the term clarifies what a loan is worth.

Formula

Small Business Loan Payment

Payment = P x r x (1+r)^n / ((1+r)^n - 1)

r
Monthly interest rate (annual rate / 12)
n
Number of monthly payments

Worked example

With the default values below, Small Business Loan Payment returns Monthly Payment of $1,013.82. Change any input above and every figure here is recalculated in your browser.

Inputs used

Loan amountminimum 0
50,000
Annual interest rateaccepts 0–40 %
8 %
Term in yearsminimum 1
5

Results

Monthly Payment
$1,013.82
Total Repaid
$60,829.18
Total Interest
$10,829.18

Step by step

  1. 1Values used
  2. 2Small Business Loan Payment
  3. 3Monthly Payment= 1,013.82
  4. 4Total Repaid= 60,829.18
  5. 5Total Interest= 10,829.18

Assumptions and limits

  • The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or fees or charges into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is Small Business Loan Payment calculated?

Payment = P x r x (1+r)^n / ((1+r)^n - 1) Equal monthly payments amortize the loan so interest is paid on the declining balance, which is why early payments are mostly interest.

Why does Small Business Loan Payment matter?

The quoted rate hides how much financing really costs, so checking the total interest over the term clarifies what a loan is worth.

What values do I need to enter?

This calculator takes 3 inputs: Loan amount, Annual interest rate, Term in years. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.

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