How much do extra payments save?
On $200,000 at 6% over 30 years, paying $200 more each month clears the loan in 252 months instead of 360, 108 months sooner, and saves $79,801 of interest. Enter an extra amount to see it for your loan.
Business Loan Calculator
Payment, interest and DSCR.
Enter the loan amount, rate and term.
Estimate only: excludes lender fees and rate changes.
How it is worked out
- Monthly payment = loan × r ÷ (1 − (1 + r)^−n)
- r = yearly rate ÷ 12, n = number of monthly payments
- DSCR = yearly income ÷ yearly loan payments
Example: A $50,000 loan at 9% over 60 months costs $1,037.92 a month and $12,275.07 in interest. Over 120 months the payment drops to $633.38, but the interest rises to $26,005.46.
About the Business Loan Calculator
Monthly payment, total interest and a full schedule, plus whether your income covers the payments (DSCR).
How to use this tool
- Enter the loan amount, the yearly interest rate and the term, in years or months.
- Add your yearly income to see whether it covers the payments (DSCR).
- Check the schedule for principal, interest and the balance left each month.
Frequently asked questions
How is a fixed monthly loan payment calculated?
Payment = loan × r ÷ (1 − (1 + r)^−n), where r is the yearly rate ÷ 12 and n is the number of months. Each month interest is charged on the balance left, and the rest of the payment pays down the loan. Fees and rate changes are not included.
Does a longer term save money?
It lowers the payment but costs more in total. $50,000 at 9% is $1,037.92 a month over 5 years ($12,275.07 interest) or $633.38 over 10 years ($26,005.46 interest).
Can I see how much interest I will pay?
Yes. The amortization schedule splits every payment into principal and interest and shows the balance left after it.
What is DSCR and what do lenders want?
The debt service coverage ratio is your yearly income available for debt divided by your yearly loan payments. 1.0 means income exactly covers the payments. Most banks and SBA lenders look for at least 1.25.
Does it work for SBA and equipment loans?
Yes, for any loan with a fixed rate and equal monthly payments. If the rate is variable, the payment changes when the rate does; enter today’s rate for an estimate.