Business Loan Calculator
Work out the payment and true APR of a business loan, with fees.
Costing a business loan
Business loans often carry origination fees, legal costs and other charges on top of the interest. This calculator turns them into a single APR so you can compare lenders.
Example
A 100,000 loan at 9% for 5 years with a 2% fee and 500 of other costs has a payment of about 2,075.84 and fees of 2,500, so the APR is about 10.09%.
Lenders also look at whether your business income covers the payments. A simple check is to make sure your yearly profit before the loan payments is comfortably above the yearly payments. Some business loans use daily or weekly payments, or factor rates, which this tool does not model.
Frequently asked questions
Is APR the same as the interest rate?
No. APR includes fees, so it is higher than the interest rate when there are fees.
Are factor rates the same?
No. A factor rate (such as 1.2) is a flat charge, and its APR can be far higher than it looks.
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