Business Loan Calculator
Estimate monthly payments, total interest, and see a full amortization schedule for your business loan.
Loan Inputs
Loan Results
Amortization Schedule
How to Use the Business Loan Calculator
- Enter Loan Details: Input the total Loan Amount, the Annual Interest Rate, and the Loan Term in years and/or months.
- Set the Start Date: Select the date your loan payments will begin. This helps calculate an accurate pay-off date.
- Analyze the Summary: The results update instantly. The summary tab shows your Monthly Payment (EMI), the total interest you'll pay, the total amount paid back, and the final pay-off date. The chart visualizes the split between principal and interest.
- Review the Amortization Schedule: Click the 'Amortization' tab to see a detailed, payment-by-payment breakdown of your entire loan, showing how much of each payment goes towards interest versus principal, and your remaining balance over time.
Understanding Business Loan Amortization
Securing a business loan is a critical step for growth, but understanding the repayment structure is just as important. Our calculator uses an amortization schedule to provide full transparency into your loan. **Amortization** is the process of spreading out a loan into a series of fixed payments over time. Each payment you make consists of two parts: **principal** and **interest**. The principal is the money you originally borrowed, while interest is the cost charged by the lender for borrowing that money. At the beginning of your loan term, a larger portion of your monthly payment goes towards paying off interest. As you continue to make payments, this gradually shifts, and more of your payment goes towards reducing your principal balance. This calculator's amortization table clearly shows this process for every single month of your loan. By seeing this breakdown, you can understand the true cost of your loan and make strategic decisions, such as whether making extra payments to reduce the principal faster is a viable option for your business to save on total interest costs.
Key Loan Terms Explained
- EMI (Equated Monthly Installment): This is your fixed monthly payment amount. It remains the same for the entire loan term.
- Total Interest: This is the total profit the lender makes from your loan. A lower interest rate or a shorter loan term will reduce this amount.
- Total Payment: This is the sum of the original loan amount (principal) plus all the interest paid over the life of the loan.