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Business Loan Calculator

Business loan payment, total cost and effective APR with fees.

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TermPaymentTotal costEffective APR

Monthly payment

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Cash you receive—
Total fees—
Cost of borrowing—
Total repaid—
Quoted price—
Effective APR—
Cost per 1 borrowed—

Quick Tool Overview

The Business Loan Calculator handles both conventional amortizing loans and the factor rate pricing used by merchant cash advances, converting a factor rate into a comparable APR — which is the only way to weigh a short-term advance against a bank loan.

What it does
Calculates business loan payments and the true APR including fees
You give it
Amount, rate or factor rate, term and fees
You get back
The payment, total cost and effective APR
Best for
Comparing bank loans, SBA loans and short-term advances
Calculators Free, unlimited use No sign-up Runs in your browser

About the Business Loan Calculator

Enter the amount, rate, term and fees to get the monthly payment and the true cost of business borrowing. The calculator handles both conventional amortizing loans and the factor rate pricing used by merchant cash advances and short-term lenders.

Factor rates are where business borrowers lose the most money, because they are not interest rates and cannot be compared to them directly. A factor of 1.3 on fifty thousand means repaying sixty-five thousand regardless of how fast you repay it, which over a short term is an APR many times the number implies. Converting a factor rate to an APR is the only way to compare it against a bank loan, and the calculator does that conversion for you.

Key features of the Business Loan Calculator

Factor rates converted to APR

A factor of 1.3 over a short term is an APR many times what the number suggests, and the conversion makes that visible.

Every fee in the APR

Origination, closing, packaging and guarantee fees all belong in the comparison figure.

Two pricing models

Conventional interest and factor pricing in one place, so offers of different shapes can be compared.

Early repayment reality

On a factor rate, repaying early saves nothing — the calculator says so rather than implying otherwise.

Total cost of capital

The full amount repaid, which is the number that comes out of the business.

How to use the Business Loan Calculator

  1. 1

    Choose the pricing type

    A conventional interest rate, or a factor rate as quoted by short-term lenders.

  2. 2

    Enter the amount and term

    The sum borrowed and the repayment period in months.

  3. 3

    Add every fee

    Origination, closing, guarantee and packaging fees all belong in the effective APR.

  4. 4

    Compare on APR

    The effective APR is the only figure that lets you compare two differently-structured offers.

Frequently asked questions

A multiplier applied to the amount advanced. A factor of 1.3 on fifty thousand means repaying sixty-five thousand in total, no matter how quickly. It is not an interest rate and repaying early saves you nothing.

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