Business Loan Amortization Calculator (2026) — Payment, Interest, Full Schedule

It uses the standard amortizing-loan formula: Monthly payment = P × r × (1+r)^n / ((1+r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the term in months. Every fully-amortizing loan — bank term loans, SBA 7(a), conventional commercial — uses this math. Merchant cash advances do not (they use factor rates) — for MCA math see the Factor Rate Calculator.

Directional ranges in 2026: bank-tier term loans 6–10%, SBA 7(a) at Prime + 2.25–2.75% (so roughly 9.00%–9.50% at the current 6.75% Prime, per the Federal Reserve H.15 release), non-bank term loans 10–18%, alt-credit and merchant cash advances 18%+ on an APR-equivalent basis. Your actual quoted rate depends on FICO, time-in-business, monthly revenue, deposit history, existing debt, and industry — the lender decides on file. Verify current market rates against the Federal Reserve H.15 daily rate release before quoting yourself.

Both are legitimate, depending on your binding constraint. Shorter term = less total interest, more monthly burden. Longer term = more total interest, less monthly burden. The right answer depends on whether monthly cash flow or total cost of capital is the constraint. The comparison table in this calculator lets you see the dollar trade-off directly — a 60-month term at the same rate typically costs 2-3× the interest of a 24-month term, but cuts the monthly payment by ~60%.

Period-by-period: how much of each payment goes to principal vs interest, and what the remaining balance is after that payment. Early payments on a fully-amortizing loan are interest-heavy because interest accrues on the full outstanding balance; as the balance drops, more of each payment shifts to principal. By the last 12 months of a 60-month loan, the split typically flips — most of each payment is principal at that point.

It's a quick burden check. Bank-tier underwriting typically wants the loan payment under 15% of monthly revenue for a healthy SMB — that's the heuristic version of a 1.25× DSCR (debt service coverage ratio). Above 15%, conventional bank lenders start flagging the file; non-bank lenders may still fund but pricing reflects the tighter cushion. Above 25%, even non-bank lenders get cautious. This is a screening number, not the full DSCR — for the precise DSCR math see the DSCR Calculator.

No — the calculator shows interest only. Most SMB term loans charge a 1–5% origination fee deducted from disbursed funds (so a $100K loan at 3% origination nets you $97K), plus standard closing costs depending on the product. To compare offers apples-to-apples, ask your lender for the all-in APR including origination — that's the number that includes fees in the cost-of-capital calculation.

The amortization math is identical for SBA loans, but SBA 7(a) is variable-rate (Prime + spread) and SBA 504 has a three-piece capital stack (bank + CDC + equity). For SBA-specific math including guaranty fees and the 504 stack, use the SBA 7(a) Payment Calculator and SBA 504 Payment Calculator — both are linked below.

Not necessarily. ClearValue Lending is a funding platform, not a lender — the actual rate is set by the lender on your specific file after underwriting reviews FICO, bank statements, time-in-business, deposit consistency, existing debt, and industry. Pre-qualification estimates narrow the range, but the final rate lands with the term sheet. Use this calculator to pressure-test what a given rate means in dollars — not to predict what your rate will be.