# Business Loan Calculator

> Work out business loan payments monthly, fortnightly, weekly or quarterly, and see how origination and other fees push the true APR above the quoted rate.

Category: Finance · Applies to: Worldwide · Last updated: 2026-10-29
Interactive calculator: https://calculators.geekmidst.com/calculators/business-loan-calculator

Lenders often deduct fees from the money you receive, so you repay the full loan but get less cash. The APR here is the rate that makes your payments worth exactly what you actually received.

Also called: Small business loan calculator, SBA loan payment calculator.

## Inputs
- Loan amount (default 100000)
- Interest rate (per year) (unit %; default 8)
- Loan term (unit years; default 5)
- Payments (options: Monthly, Every two weeks, Weekly, Quarterly; default 12)
- Origination fee (unit % of loan; default 2; optional)
- Other upfront fees (default 500; optional)
- Currency

## Results
- Payment each period
- APR including fees
- Number of payments
- Total interest
- Total fees
- Cash you receive
- Total cost of borrowing

## Formula

```
Payment = P × i × (1 + i)^n ÷ ((1 + i)^n − 1), i = rate ÷ payments per year.  APR: solve Σ Payment ÷ (1 + a)^k = P − Fees, then APR = a × payments per year
```

Where:
- P: loan amount
- i: interest rate per payment period
- n: number of payments
- a: cost of credit per period including fees

## Worked example
1. Monthly rate 8% ÷ 12 = 0.6667% over 60 payments: payment = $2,027.64, total interest $21,658.37.
2. Fees: 2% × 100,000 + 500 = $2,500, so you receive $97,500.
3. The monthly rate at which 60 payments of $2,027.64 are worth $97,500 is about 0.757%, an APR of about 9.08%.

**Result:** A $100,000 five-year loan at 8% costs $2,027.64 a month; with $2,500 of fees the true APR is about 9.08%.

## What the result means

Compare loan offers on APR and total cost, not the headline rate. Fees matter more on short loans, because they are spread over fewer payments.

## Assumptions and limits
- Fixed rate, level payments and fees deducted from the loan proceeds.
- The APR is a nominal annual rate (periodic rate × payments per year), the way US lenders state APR.
- Merchant cash advances and factor-rate products are priced differently and are not covered.
- Prepayment penalties, balloon payments and variable rates are not modelled.

## Questions

### Why is the APR higher than my interest rate?

Because you pay interest on the full loan but receive less cash after fees. Spreading the fees over the term raises the effective rate.

### Do weekly payments save interest?

At the same annual rate, more frequent payments reduce the balance sooner, so total interest is slightly lower, but each payment is due more often.

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_This calculator gives estimates for planning. It is not financial advice, and lenders’ actual terms, fees and rounding may differ._

Source: GM¹X CalcVerse — https://calculators.geekmidst.com/calculators/business-loan-calculator