Business loan calculator
Model a term loan with an APR, or a revenue-based advance with a factor rate, and see payment, total payback, and true cost of capital.
- Total payback
- $86,423
- Cost of capital
- $11,423
- Number of payments
- 24
Estimates only. Actual rates, factor rates, terms, and payment schedules are determined by the funder based on underwriting. Factor-rate products are not loans and do not carry an APR; the simple annualized rate shown is for comparison purposes.
How to use this calculator
Use the APR tab for products with an interest rate and fixed monthly payments: business term loans, SBA loans, equipment financing, and lines of credit. Use the Factor tab for revenue-based financing and merchant cash advances, which quote a factor rate and collect daily or weekly.
The most useful number is cost of capital — the total dollars you pay beyond what you borrowed. Compare that against the return you expect from the funds. If a $50,000 advance costs $12,500 and funds inventory that nets $40,000, the financing paid for itself three times over.
How is a business loan payment calculated?
For a term loan, the payment is calculated with a standard amortization formula using the loan amount, the monthly interest rate (APR ÷ 12), and the number of months. Each payment covers interest for the period plus a portion of principal.
What is a factor rate and how do I convert it to APR?
A factor rate is a multiplier (e.g., 1.25) applied to the amount advanced to determine total payback. To estimate an annualized rate, divide the cost by the amount, then divide by the term in years. A 1.25 factor repaid over 9 months is roughly a 33% simple annualized rate — though because payments start immediately, the true APR is higher.
Why do short-term products cost more per dollar?
Short-term funders accept higher risk, fund faster, and underwrite on cash flow rather than collateral. The total dollars paid may still be lower than a long-term loan because the money is outstanding for less time.
How much can I actually borrow?
Most businesses qualify for 80–150% of their average monthly revenue on short-term products, and more for term loans, equipment, and SBA loans. Pre-qualify for a real estimate based on your profile.
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