Business Loan Calculator
Calculate your payment, find your maximum loan amount, and compare SBA 7(a), bank, online, and equipment financing options. March 2026 rates.
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How to Use This Calculator
Loan Payment tab
The default tab. Enter your loan amount, interest rate, and term. The calculator shows your periodic payment, total interest, total cost including fees, effective APR, and estimated tax savings from the business interest deduction. Expand "More options" to add origination fee and SBA guarantee fee.
How Much Can I Afford? tab
Enter your monthly revenue, operating expenses, and existing debt payments. The calculator computes your net operating income, applies the DSCR requirement (default 1.25x — the bank/SBA standard), and shows the maximum loan your business can support.
Compare Loan Types tab
Enter the amount you need. The calculator compares five loan types side by side — SBA 7(a), bank term loan, online lender, business line of credit, and equipment financing — using typical March 2026 rates. See monthly payment, total cost, approval difficulty, and funding speed for each.
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Every input is encoded in the URL. Click Share to send your exact scenario to a business partner, accountant, or loan broker.
The Formula
Business loan payments use the standard amortization formula:
P = loan principal
r = periodic interest rate (annual rate ÷ payments per year)
n = total number of payments
DSCR = Net Operating Income ÷ Total Debt Service
Max Payment = Available Cash Flow ÷ Target DSCR
Effective APR = rate that makes PV of payments = (principal − fees)
The key insight: fees increase your effective APR significantly on shorter loans. A 2% origination fee on a 3-year loan adds ~0.7% to APR. On a 10-year loan, the same fee adds only ~0.2%.
The DSCR (Debt Service Coverage Ratio) is how lenders measure your ability to repay. A DSCR of 1.25x means your available cash flow is 25% higher than the required payment — providing a safety margin.
Example
Maria — Bakery Owner, 38, Portland OR
Maria owns a growing bakery. Revenue $65K/mo, expenses $48K/mo, existing equipment loan $1,200/mo. She wants $150K for a second location buildout.
How Much Can I Afford? tab
She can easily afford $150K. Her DSCR at $150K would be over 9x.
Loan Payment tab
Compare Loan Types tab
SBA 7(a) at 7.5% over 10 years vs online lender at 15% over 10 years: SBA saves ~$77,000 in interest. The tradeoff: SBA takes 60-90 days to fund vs 1-3 days for online lenders.
Business Loan Rates — March 2026
Current Prime Rate: 6.75% (since December 2025). Rates below are typical ranges.
| Loan Type | Rate Range | Typical Term | Max Amount |
|---|---|---|---|
| SBA 7(a) | 9.75% – 13.25% | 10–25 years | $5M |
| SBA 504 | 5.6% – 5.8% | 10–25 years | $5.5M |
| Bank term loan | 7% – 12% | 3–10 years | Varies |
| Online lender | 11% – 36% | 1– 5 years | $250K |
| Business LOC | 7% – 15% | Revolving | Varies |
| Equipment financing | 6% – 18% | 3–7 years | Equipment value |
| Invoice factoring | 1–5%/month | Per invoice | Invoice value |
SBA 7(a) rates = Prime + spread. Spread depends on loan size: $350K+ gets Prime+3% (9.75%), under $50K gets Prime+6.5% (13.25%). FY2026 special: manufacturing loans up to $950K have 0% guarantee fee.
Frequently Asked Questions
It depends on the loan type and your qualifications. Bank term loans: 7-12%. SBA 7(a): 9-13% (based on Prime + spread). Online lenders: 11-36%. The best rates go to businesses with 2+ years of history, 700+ credit score, strong revenue, and collateral. SBA 504 loans for real estate have the lowest rates at 5.6-5.8% (fixed, March 2026).
DSCR (Debt Service Coverage Ratio) = Net Operating Income ÷ Total Debt Payments. It measures whether your business generates enough cash to cover loan payments. Most banks and SBA lenders require 1.25x minimum — meaning your available cash flow must be 25% more than the payment. Below 1.25x, expect higher rates or denial. Below 1.0x means you can't cover the payment at all.
SBA 7(a) loans offer lower rates and longer terms (up to 25 years for real estate, 10 years for working capital), but the application process is complex and takes 60-90 days. Bank term loans are faster (2-4 weeks) and simpler, but typically shorter terms (3-7 years) and may require more collateral. If you can wait and qualify, SBA usually saves significantly on total interest. For a $150K loan, SBA at 7.5% vs bank at 10% over 10 years saves ~$25K.
Yes. Business loan interest is 100% deductible as a business expense under IRC §163. This reduces your effective cost. For example, if your business pays $10,000 in annual interest and you're in the 25% tax bracket, the after-tax cost is only $7,500. The deduction applies to all business loan types — SBA, bank, online, and equipment financing. Origination fees may also be deductible, either immediately or amortized over the loan term.
It depends on your revenue, DSCR, credit, and collateral. A typical small business loan is $100K-$500K. SBA 7(a) goes up to $5M. The practical limit is your DSCR: if your business generates $15,000/mo in available cash flow and the lender requires 1.25x DSCR, your max monthly payment is $12,000. At 8% over 7 years, that supports a loan of ~$745K. Use the "How Much Can I Afford?" tab to find your number.
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