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Free Business Loan Repayment Calculator

Compare repayment costs across bank loans, SBA loans, and online lenders side by side. See monthly payments, total interest, and total cost for each option so you can choose the best financing for your business.

Loan Comparison

$
Traditional bank: 5-9%
SBA 7(a) typical: 9-13%
Online/fintech: 15-40%
Monthly Payment Comparison
Lower is better — scroll down for total cost
Bank Loan
$0.00
per month
Total Interest$0
Total Cost$0
APR7.0%
SBA Loan
$0.00
per month
Total Interest$0
Total Cost$0
APR11.0%
Online Lender
$0.00
per month
Total Interest$0
Total Cost$0
APR25.0%

How to Use

This calculator compares three common business loan types side by side. Enter the loan amount, then adjust rates for bank loans, SBA loans, and online lenders. Set the loan term in months and click calculate to see your comparison.

The comparison cards show your monthly payment, total interest, total cost, and APR for each option. The highlighted card shows the balanced option (SBA), which often offers the best combination of rate and accessibility.

Amortization Formula

Monthly payments are calculated using the standard amortization formula:

M = P × [r(1+r)n] / [(1+r)n − 1]

Where: M = monthly payment, P = loan principal, r = monthly interest rate (annual rate / 12), and n = total number of monthly payments.

Frequently Asked Questions

Bank loans offer the lowest rates (typically 5-9%) but have strict qualification requirements including strong credit, collateral, and years in business. SBA loans are government-backed with competitive rates (9-13%) and more flexible terms, but require extensive paperwork. Online lenders offer fast funding and easier qualification but charge higher rates (15-40%).
Monthly payments use the standard amortization formula: M = P x [r(1+r)^n] / [(1+r)^n - 1], where P is the principal loan amount, r is the monthly interest rate, and n is the total number of monthly payments.
The best loan type depends on your credit profile and urgency. Bank loans are best for established businesses with strong credit. SBA loans are ideal for businesses that need competitive rates but may not qualify for bank loans. Online lenders are best for urgent needs despite higher costs.
Most business loans allow early repayment, but some charge prepayment penalties (typically 1-3% of the remaining balance). SBA loans generally do not have prepayment penalties after the first year.