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Free Small Business Loan Calculator

Plan your business financing with confidence. This small business loan calculator shows your monthly EMI, total interest, full amortization schedule, and debt-to-income ratio based on your monthly revenue.

Business Loan Calculator

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$0.00
Monthly Payment (EMI)
Total Interest$0
Total Repayment$0
Number of Payments0
Debt-to-Income Ratio--

How to Use the Small Business Loan Calculator

Using this business loan calculator is straightforward. Start by entering the loan amount you plan to borrow for your business. Then input the annual interest rate your lender has quoted. Business loan rates typically range from 6% to 30% depending on your creditworthiness, business history, and loan type.

Choose your loan term in years or months — most small business loans range from 1 to 10 years. You can switch between years and months using the dropdown. If you enter your monthly revenue, the calculator will also show your debt-to-income (DTI) ratio, which lenders use to assess your ability to repay.

Click "Calculate" and you'll see your monthly EMI payment, total interest, and total repayment amount. The yearly amortization schedule breaks down how much of each year's payments go toward principal versus interest.

Business Loan EMI Formula

The monthly payment is calculated using the standard amortization formula:

EMI = P × [r(1+r)^n] / [(1+r)^n − 1]

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

The debt-to-income ratio is calculated as: DTI = (Monthly Payment / Monthly Revenue) × 100.

Frequently Asked Questions

Common types include term loans (lump sum repaid over a fixed period), SBA loans (government-backed with competitive rates), business lines of credit (flexible borrowing up to a limit), and equipment financing. Each has different rates, terms, and qualification requirements.
Rates vary widely based on your credit score, business revenue, time in business, and loan type. SBA loans typically range from 7-10%, traditional bank loans from 6-12%, and online lenders from 10-30%. Compare multiple offers to find the best rate.
Lenders calculate DTI by dividing your total monthly debt payments (including this loan) by your monthly business revenue. A DTI below 35% is considered healthy, 36-50% may require explanation, and above 50% often leads to loan denial.
Many business loans allow early repayment, but some charge prepayment penalties. Check your loan agreement before making extra payments. Paying early saves on interest but may come with a fee (typically 1-3% of the remaining balance).