Business Loan Calculator
Calculate your monthly business loan payment, total interest, and full amortization schedule for any type of business financing.
Business Loan Key Facts
Monthly Payment
$0
Term Loan
Loan Summary
DSCR Analysis
DSCR = Net Income ÷ Annual Debt Payment. Most lenders require 1.25+
Revenue Analysis
💡 Business Loan Rates USA (2026)
Term Comparison
| Term | Monthly | Total Interest |
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Quick Answer
For a $150,000 business term loan at 8.5% interest over 60 months, the estimated monthly payment is approximately $3,077. With annual net income of $80,000, this results in a DSCR of approximately 2.16, indicating strong lender approval likelihood. Adjust the calculator above with your own loan amount for a personalized estimate.
Amortization Schedule
| Month | Payment | Principal | Interest | Balance |
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What is a Business Loan?
A business loan provides capital for starting, growing, or sustaining a business, offered by banks, online lenders, and the Small Business Administration. Business loans come in many forms — from lump-sum term loans to flexible lines of credit — each suited to different needs like equipment purchases, working capital, real estate, or business acquisition.
How to Use the Business Loan Calculator Step by Step
- Select your loan type — choose from term loan, SBA loan, equipment financing, line of credit, or others.
- Enter your loan amount — the total capital you need for your business purpose.
- Enter your interest rate — based on your lender quote or loan type presets.
- Select your loan term — from 12 months up to 300 months for real estate-backed loans.
- Add your annual revenue and net income — used to calculate your DSCR for lender assessment.
- Review your results — see your monthly payment, DSCR ratio, and lender approval likelihood.
Business Loan Rates in USA 2026
Business loan rates in 2026 vary significantly by loan type, with SBA loans offering the most competitive rates and merchant cash advances carrying the highest costs.
| Loan Type | Average Rate (2026) |
|---|---|
| SBA 7(a) Loan | 6% – 8% |
| SBA 504 Loan | 6% – 7% |
| Bank Term Loan | 7% – 12% |
| Online Term Loan | 10% – 30% |
| Equipment Financing | 8% – 18% |
| Merchant Cash Advance | 40% – 150% APR |
Rates are illustrative averages based on national market conditions in 2026 and vary by lender, industry, and business profile.
Understanding DSCR for Business Loans
Debt Service Coverage Ratio (DSCR) equals your annual net operating income divided by your total annual debt payments. Most lenders require a minimum DSCR of 1.25, meaning your business earns $1.25 for every $1 of debt payment owed.
- DSCR above 1.5: Excellent — strong likelihood of approval with favorable terms.
- DSCR 1.25 to 1.5: Good — meets standard lender requirements.
- DSCR 1.0 to 1.25: Marginal — may qualify but with additional scrutiny or higher rates.
- DSCR below 1.0: Insufficient — indicates the business cannot cover its debt obligations from operating income.
Business Loan Calculator FAQs
What type of business loan is best for my needs?
Term loans work well for one-time large purchases like equipment or expansion. Lines of credit suit ongoing working capital needs. SBA loans offer the best rates for qualified businesses but require more documentation and longer approval times. Equipment financing is ideal when the asset itself can serve as collateral.
How much revenue do I need to qualify for a business loan?
Most traditional lenders require a minimum annual revenue of $100,000, though requirements vary widely by lender and loan type. Online lenders may approve businesses with as little as 6 months of operating history and lower revenue thresholds, though rates will typically be higher.
What is the difference between secured and unsecured business loans?
Secured business loans require collateral such as equipment, real estate, or inventory, typically offering lower interest rates. Unsecured loans don't require collateral but often carry higher rates and stricter credit requirements since the lender assumes more risk.
Should I avoid merchant cash advances?
Merchant cash advances should generally be a last resort due to extremely high effective APRs, often 40% to 150% or more. While they offer fast funding with minimal credit requirements, the cost is substantially higher than nearly any other financing option available to small businesses.
Tips to Qualify for Better Business Loan Terms
- Improve your DSCR before applying: Pay down existing debt or increase revenue to strengthen your ratio.
- Build business credit separately: Establish a business credit profile distinct from your personal credit.
- Maintain clean financial records: Organized bookkeeping speeds up underwriting and builds lender confidence.
- Consider SBA loans for best rates: If you qualify, SBA loans offer significantly better terms than most alternatives.
- Shop multiple lenders: Rates and terms vary widely — always compare at least 3 offers before deciding.
Term Loan vs Line of Credit Comparison
| Term Loan | Line of Credit | |
|---|---|---|
| Disbursement | Lump sum | Revolving credit |
| Best For | One-time large expenses | Ongoing working capital |
| Interest Charged On | Full loan amount | Only amount drawn |
Disclaimer: This calculator provides estimates only and does not constitute financial advice. Contact an SBA-approved lender or financial advisor for personalized business financing guidance.