Calculator

Monthly Payment on a Business Loan

A $50,000 loan at 9% APR over 5 years costs about $1,037/month, totaling $62,244 — $12,244 of interest. At 12% the payment rises to $1,112 and interest to $16,720.

Results

Visualization

Cashbizly provides illustrative business estimates only. Results depend on your inputs and assumptions and are not accounting, tax, or legal advice. Consult a CPA or financial advisor before major decisions. Tax-year figures (mileage, QBI, SEP, etc.) are labelled by year and should be verified at IRS.gov.

How It Works

Monthly Payment = P x r / (1 - (1+r)^-n), where r = APR/12 and n = months. Total Paid = Payment x n; Interest = Total - Principal. This is the standard amortization formula used by every lender; it assumes equal monthly payments and a fixed rate.

What Should You Do?

Scenario 1: doubling the term to 10 years halves the payment but nearly doubles total interest. Scenario 2: a 1-point APR drop on $50k/5yr saves ~$23/month and ~$1,380 total. Scenario 3: extra principal payments cut interest nonlinearly — even $100/month extra helps.

Frequently Asked Questions

Fixed vs variable rate?

This assumes fixed. A variable rate can rise and increase payments; model the worst case before borrowing.

Does APR include fees?

Not always — APR excludes some fees. The SBA guarantee fee and origination are extra; ask for the APR that includes them.

Should I compare to leasing?

Often yes for equipment — see our Equipment Lease vs Buy tool.

Authoritative References

SBA — 7(a) Loan Program — Term-loan structure and rates.
Investopedia — Amortization — Amortization schedule and formula.