Business Loan Calculator

Business loans come in many different forms. Most will require monthly payments, such as the SBA or conventional loan. Others may require weekly, daily, or interest only payments. A select few can require repayment when the loans mature. Regarding small business loans, lenders may also ask for origination, documentation, or closing fees among many others, which can make the actual cost or rate of the loans higher than the interest rate given by the lenders. The calculator below can deal with these situations and give out the real cost of the loan with fees included.

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Business Loan Fees

Origination Fee

This is a fee charged for processing loan application and approval, which may include verification of a borrower’s information. They can be applied as a flat fee or as a percentage (generally 1%-6%) of the loan amount. The origination fee may be rolled into the loan.

Documentation Fee

A common fee associated with loans that is used for the processing of paperwork.

SBA Loans

Small Business Administration (SBA) loans, which are federally regulated by the U.S. Small Business Administration, are designed to meet the financing needs of many different business types. Depending on the type of SBA loan, they can be used for various purposes including business start-up or acquisition, working capital, real estate, franchise financing, debt refinancing, or improvements and renovations. Loan funds are not provided by the government organization, but by banks, local community organizations, or other financial institutions. These lenders are typically guaranteed 75% to 90% of the loan amount by the SBA in the case of default. This reduces lender risk and encourages lending. However, there is additional paperwork that is necessary along with extra fees when applying for SBA loans. On top of that, it may take longer to get approved. Also, beware that they tend to be more strictly regulated, giving business owners less freedom, and maximum loan limits may be insufficient for more costly business needs.

The SBA offers four types of small business loans:

7(a) Loan

This is the primary small business loan offered by the SBA, and is usually what is referred to when talked about SBA loans. They make up more than 75% of all SBA loans and can be utilized for many purposes including working capital or the purchase of machinery, equipment, land, new buildings, or even debt financing. $5 million is the maximum loan amount available over a maximum possible term of 10 years for working capital, or 25 years for fixed assets.


These loans are intended for new or growing small businesses. They can be utilized for everything covered under 7(a) loans except to pay off existing debt or to purchase real estate. The maximum possible loan amount is $50,000, but the average loan amount is $13,000. Maximum allowable term is six years.

Real Estate & Equipment Loan (CDC/504)

These loans are generally intended for the long-term fixed-rate financing of real estate or equipment and, as well as to refinance debt. They cannot be utilized for working capital or inventory. The maximum loan amount is $5.5 million with a maximum possible term of 10 or 20 years.

Disaster Loan

These loans can be used to repair or replace real estate, machinery, equipment, as well as inventory or business assets that are damaged or destroyed as a result of disaster. The maximum loan amount is $2 million. Possible disasters include earthquakes, storms, flooding, fires (natural or manmade), and civil unrest.

Conventional Loans

Although most conventional loans come from banks, unlike SBA loans, there is no governmental insurance for lenders. Compared with SBA loans, conventional loans may carry low interest rates for borrowers with excellent credit because of their simplicity. On the other hand, borrowers with lower credit or those who are low on funds will likely receive less favorable rates, and may find SBA loans to be more attractive. The approval process for conventional loan is much quicker and is less regulated.

Personal Loans

It is possible to use the proceeds from personal loans for small business purposes, which can be helpful in many situations. For example new businesses without established histories and reputations can use it to avoid the high business loan interest rates. Refer to the Personal Loan Calculator for more information or to do calculations involving personal loans.


An interest-only loan is different from standard loans in that only interest is paid for the duration of the loan. The entire principal balance is only due at loan maturity. An interest-only loan allows less payback during the initial years, and might make sense when high income is expected in the future.

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