Small business loan calculator
Last updated November 2026. Published by 1West. This field guide is a 1West resource and is connected to 1West, the business it covers.
Part of the guide: how much does a business loan cost
How do I calculate my small business loan payment?
Enter the amount, APR, term, and upfront fee below, and this small business loan calculator returns your monthly payment, total interest, and an estimated APR that includes the fee.
The 1West small business loan calculator uses the standard amortization formula lenders use for fixed rate term loans. It accepts commas and dollar signs, checks every figure before it shows a result, and labels its assumptions. Use it with the rate on a real offer, or with published ranges to see a best and worst case.
Small business loan payment calculator
Estimate only, not an offer or an eligibility decision. Assumes a fixed rate, equal monthly payments, no prepayment, and the fee deducted at funding. Total cost of borrowing: $26,716.
| Year | Principal paid | Interest paid | Balance left |
|---|---|---|---|
| 1 | $16,319 | $9,024 | $83,681 |
| 2 | $17,981 | $7,362 | $65,700 |
| 3 | $19,813 | $5,530 | $45,887 |
| 4 | $21,831 | $3,512 | $24,055 |
| 5 | $24,055 | $1,288 | $0 |
How the small business loan calculator does the math
The 1West calculator divides the APR by 12 to get a monthly rate, then finds the single fixed payment that repays the balance plus interest over the number of months you enter. Early payments are mostly interest; later payments are mostly principal, which the yearly table shows. Total interest is all payments minus the amount borrowed.
When you add an upfront fee, you receive less than you borrow but still repay the full balance. The calculator solves for the yearly rate that matches those cash flows, which is why the estimated APR with a fee is higher than the stated interest rate. That is the same logic behind the APR in lender disclosures.
Worked example: $100,000 over five years
| Input or result | Value |
|---|---|
| Amount | $100,000 |
| APR | 9.74% (top of Q2 2026 bank range, NerdWallet) |
| Term | 60 months |
| Monthly payment | $2,111.93 |
| Total repaid | $126,716 |
| Total interest | $26,716 |
Using it as a small business loan rate calculator
If you do not have an offer yet, run the calculator twice: once at 6.44% and once at 9.74%, the Q2 2026 bank loan range NerdWallet reports from Federal Reserve data. For online working capital, try a higher figure; LendingTree reports working capital rates from about 3% to 56% APR. The gap between the two results is your planning range.
The calculator does not handle factor rates, variable rates, balloon payments, or lines of credit with changing balances. For a factor rate offer, use the factor rate to APR calculator. To weigh several offers at once, use the offer comparison worksheet.
Small business loan repayment calculator checklist
- Use the APR from the written offer, not an advertised starting rate.
- Enter fees as a percent of the loan amount.
- Compare the monthly payment with your slowest month in your last four bank statements.
- Try a shorter term to see how much total interest falls.
- Record the result in the offer worksheet before you decide.
Common questions on this topic
- How do I use a small business loan calculator?
- Enter the amount, the APR from your offer, the term in months, and any upfront fee. The small business loan calculator then shows the monthly payment, total interest, total repaid, and an estimated APR that includes fees, plus a year by year balance table. Results are estimates, not offers, and real terms always come from the lender. See it in the FAQ
- How to calculate business loan interest?
- For a standard amortizing loan, divide the APR by 12 to get the monthly rate, then use the payment formula to find a fixed payment; total interest is all payments minus the amount borrowed. For a factor rate product, the cost is the advance times the factor rate, minus the advance. The small business loan calculator here runs these steps for you. See it in the FAQ
- Why does a shorter term raise the payment but lower the cost?
- A shorter term spreads the same principal over fewer payments, so each payment is larger, but interest has less time to build, so total interest falls. For factor rate products the dollar cost is fixed, so a shorter term does not reduce cost; it raises the effective APR instead. Check both the payment and the total cost against your cash flow. See it in the FAQ
- What is the difference between an interest rate and APR?
- The interest rate is the yearly charge on the money you borrow, while APR (annual percentage rate) folds in fees and expresses the full yearly cost as one percentage. Two loans with the same interest rate can have different APRs if one charges an origination fee. APR is the better number for comparing offers of different shapes. See it in the FAQ
- How hard is it to get a $100,000 business loan?
- A $100,000 loan is more achievable when revenue comfortably covers the payment. At 9.74% APR over five years the payment is about $2,112 a month, so lenders will look for bank statements showing room for that amount. Larger requests can bring more documentation, collateral, or guarantee requirements. Use the calculator to test affordability first. See it in the FAQ
- What is the monthly payment on a $250,000 business loan?
- On a 10 year amortizing loan, a $250,000 balance costs about $2,831 a month at 6.44% APR and about $3,268 a month at 9.74% APR, the low and high ends of the Federal Reserve bank loan range reported by NerdWallet for Q2 2026. These are illustrations, not offers. A shorter term, fees, or a higher rate will raise the payment, so run your own figures in the calculator. See it in the FAQ
Numbers look workable? Start with ABLE
When your numbers make sense, one application through 1West ABLE lets you compare financing options with automation and expert guidance. Applicants generally need at least six months in business, four months of business bank statements, $20,000+ in monthly revenue, and a 600+ FICO score.
Financing is subject to lender approval and final terms. Applying does not guarantee approval, a rate, or timing.
Sources for this chapter
- Average Business Loan Interest Rates: November 2026, NerdWallet, citing Federal Reserve data
- Best Working Capital Loans November 2026, LendingTree
Market figures belong to the sources named above, not to 1West. Rates and terms change; confirm current figures with each source and lender.