Business Loan Calculator

Monthly payment, total interest and total cost for a business loan, including the origination fee. Results update as you type.

Loan amount

Interest rate (annual %)

Loan term (years)

Origination fee (%)

Start date

Monthly payment

$0.00

Cost breakdown

Amortization schedule

How this calculator works

The monthly payment is calculated on the loan amount at the given rate and term, the same way as any fixed rate loan. The origination fee is a percentage of the loan amount charged upfront, so the total cost is all payments plus the fee.

Results are estimates for education only and are not financial advice.

Is the origination fee part of the loan?

Usually the origination fee is charged separately at closing and is not added to the loan balance, so it does not change the monthly payment. It still raises your total cost, which is why this calculator adds it to the total.

The formula behind the business loan

Monthly payment = P × r ÷ (1 − (1 + r)^-n). P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments. Total interest = monthly payment × n − loan amount. Total cost = monthly payment × n + origination fee, where the fee = loan amount × fee percentage ÷ 100.

How the calculation works, step by step

The origination fee is calculated as a percentage of the loan amount and charged upfront.
The monthly payment is calculated from the loan amount, rate, and term, using the formula above.
Total interest is all monthly payments minus the loan amount, and total cost is all monthly payments plus the origination fee.

Worked example

A $100,000 loan at 8% over 5 years with a 2% origination fee has a monthly payment of $2,027.64 and an upfront fee of $2,000. Total interest is $21,658, so the total cost is $123,658.

Does a longer term always mean a lower payment?

Yes, a longer term lowers the monthly payment, because the same amount is spread over more months. The trade-off is more total interest, so compare the total cost, not just the monthly number.

What is the difference between the interest rate and the total cost?

The interest rate sets the monthly payment, but the total cost also includes the origination fee. Two loans with the same rate can still have different total costs if their fees differ, which is why this calculator shows the fee separately.