Skip to main content

Business Loan Calculator

Calculate business loan payments with ROI, tax deductions, and cash flow analysis

Business Loan Details

$

Total amount you want to borrow

%

Annual percentage rate

Length of the loan

$

One-time fee charged by lender

$

For ROI calculation - current yearly revenue

$

How much you expect revenue to increase from the loan

%

For tax deduction calculation (federal + state)

Quick Scenarios:

🏢

Enter your business loan details to calculate payments and ROI

About Business Loans

Business loans provide capital for starting, expanding, or operating a business. They come in various types, each suited for different business needs:

  • Term Loans: Traditional loans with fixed repayment schedules (1-25 years)
  • SBA Loans: Government-backed loans with competitive rates (7a, 504 programs)
  • Equipment Financing: Loans specifically for purchasing business equipment
  • Lines of Credit: Revolving credit for ongoing business expenses
  • Commercial Real Estate Loans: For purchasing business property

Tax Benefits

Business loan interest is typically tax-deductible as a business expense, which can significantly reduce the effective cost of borrowing. The principal amount is not deductible, but interest payments reduce your taxable income.

Key Considerations

  • Credit Score: Business and personal credit scores affect approval and rates
  • Collateral: Many loans require business or personal assets as collateral
  • Cash Flow: Lenders evaluate your ability to repay from business revenue
  • Business Plan: Strong business plan increases approval chances
  • Fees: Watch for origination fees, application fees, and prepayment penalties

Frequently Asked Questions

What types of business loans are available?

Common types include term loans (short-term or long-term), SBA loans (7a, 504, microloan), equipment financing, business lines of credit, commercial real estate loans, and invoice financing. Each has different requirements, rates, and use cases.

How do I qualify for a business loan?

Lenders typically look at: time in business (usually 2+ years preferred), annual revenue, credit score (personal and business), debt-to-income ratio, cash flow, collateral, and a solid business plan. Requirements vary by lender and loan type.

Is business loan interest tax-deductible?

Yes, business loan interest is generally tax-deductible as a business expense. However, the loan principal is not deductible. Consult with a tax professional to understand how this applies to your specific situation.

What's a good interest rate for a business loan?

Rates vary widely: SBA loans (6-11%), bank term loans (6-13%), online lenders (7-30%), equipment financing (4-15%). Rates depend on creditworthiness, business history, loan amount, term length, and collateral. Shop around and compare offers.