Business Loan Calculator

Work out payments and true cost for a business term loan, or see what a factor-rate advance really costs.

What Do You Want to Find?
$
$
For example 1.2 to 1.5.
Daily payments; 126 is about 6 months.
Amounts in dollars.
–
Result
APR
Total interest or cost
Total repaid
Payment
Work

Saved Calculations

Items you add are saved in this browser.

NameCalculationResultRemove

Business Loan Costs

Term loan payment = P × r ÷ (1 − (1 + r)⁻ⁿ)   Factor-rate total = advance × factor rate

Merchant cash advances and some short-term loans quote a factor rate instead of an interest rate. Converting to an APR (solving for the rate that equates the daily payments to the cash received) lets you compare them with regular loans.

Worked Example

Tips

Many advances are repaid as a percentage of card sales rather than fixed daily amounts, so the real term varies. SBA loans have rate caps set by the SBA; ask the lender for the APR.