Tool
Loan & Amortization Calculator
Enter loan amount, rate, and term to see your monthly payment, total interest, and total repaid.
Results
- Monthly payment
- $1,933.28
- Total interest
- $15,996.81
- Total repaid
- $115,996.81
Standard amortizing loan. Actual SBA / bank terms may include fees not shown here.
This calculator provides directional estimates for informational purposes only and is not tax, legal, or financial advice. Results depend on the inputs you provide. For advice specific to your situation, book a Discovery Meet.
What this calculator does
This tool calculates the monthly payment, total interest, and total repayment on a business loan. Enter the loan amount, annual interest rate, and term in months. It's built for owners weighing financing — an SBA loan, equipment financing, a line of credit draw — who want to see the real cost before signing, not just the monthly figure the lender quotes.
How it works
It uses the standard amortizing-loan formula, where each monthly payment covers that month's interest plus a portion of principal, and the payment stays level for the life of the loan.
Early payments are mostly interest; later ones are mostly principal. Total interest = (monthly payment × number of months) − amount borrowed — the true cost of the financing on top of what you borrowed.
A worked example
For a $100,000 loan at 6% annual interest over 60 months (5 years):
Monthly payment ≈ $1,933
Total repaid ≈ $115,997
Total interest ≈ $15,997
The $100,000 you borrowed costs about $16,000 in interest over five years — the number that actually matters when comparing offers, not just the monthly payment.
How to read your result
Compare loans on total interest and APR, not on the monthly payment alone — a lower monthly payment often just means a longer term and more interest paid overall. Make sure the payment fits comfortably within your cash flow (run it against your runway and break-even). And watch for costs this calculator doesn't include: origination fees, prepayment penalties, and variable-rate adjustments can change the real cost meaningfully.
Common mistakes
- ·Judging a loan by the monthly payment. Stretching the term lowers the payment but raises total interest — sometimes a lot.
- ·Ignoring fees. Origination fees, closing costs, and prepayment penalties aren't in the basic payment math but are real money.
- ·Assuming a fixed rate. Variable-rate loans and lines of credit can reprice; budget for the rate rising, not just today's number.
Frequently asked questions
How is the monthly payment calculated?+
With the standard amortization formula: each level payment covers the month's interest plus some principal, sized so the loan is fully paid off by the end of the term. The calculator handles the math; you just enter amount, rate, and term.
Why do I pay so much interest early on?+
Because interest is charged on the outstanding balance, which is highest at the start. Early payments are mostly interest and little principal; as the balance falls, more of each payment goes to principal.
Should I choose a longer or shorter term?+
A longer term lowers the monthly payment but increases total interest paid. A shorter term costs more per month but less overall. Pick the shortest term whose payment fits comfortably in your cash flow.
Does this include fees and closing costs?+
No — it's the principal-and-interest payment only. Origination fees, closing costs, and any prepayment penalties are separate. Ask the lender for the APR, which folds many fees into a comparable rate.
Want a real answer, not just a calculator?
A calculator gives you a directional number. A free Discovery Meet gives you a CPA who reviews your actual books, structure, and goals.
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