Business Loan Calculator

Business borrowing spans products with very different economics, and the right comparison depends on which you are actually being offered.

Term loans provide a lump sum repaid on a fixed schedule, and behave like any amortising loan. Equipment financing is secured by the asset purchased, which typically means a lower rate because the lender can recover the collateral. Lines of credit are revolving and suit working-capital gaps rather than capital purchases — you draw what you need and pay interest only on the drawn balance. SBA-backed loans in the US carry partial government guarantees, which lets lenders offer longer terms and lower rates than they otherwise would, at the cost of a heavier application process.

Watch for products quoted in something other than an annual rate. Some short-term business lenders quote a "factor rate" — a multiplier on the amount advanced — which is not an interest rate and cannot be compared to one directly. A factor rate on a short repayment period can translate to an effective APR far above what the headline number suggests. Merchant cash advances have the same issue. Convert everything to APR before comparing.

Match the term to the purpose. Financing a long-lived asset over a short term strains cash flow unnecessarily; financing short-term working capital over a long term means paying interest on it long after it has been consumed. And check what security is required — many small business loans require a personal guarantee, which puts personal assets behind a business obligation. Everything runs in your browser — no login, no upload, and no figure you enter leaves the page.