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Monthly loan payment calculator

Updated · SBA Loan editorial

Estimate an equal monthly payment from a loan amount, annual interest rate and term.

Illustrative inputs. Calculate locally in your browser; no inputs are submitted.

How the calculation works

The monthly rate is the entered annual nominal rate divided by twelve. Payment equals principal × monthly rate ÷ [1 − (1 + monthly rate) raised to the negative number of months]. At zero interest, payment is principal divided by months. Each payment first covers interest on opening principal; the remainder reduces the balance.

Read the quote beyond the payment

This is a fixed-rate, fully amortizing illustration with monthly payments starting one month after funding. It excludes origination and guarantee fees, closing costs, collateral expenses, insurance, prepayment charges and variable-rate changes. The rate field is not an APR disclosure. A quoted cash payment may differ when the lender uses a different day-count or rounding convention.

Put debt into the operating forecast

Interest reduces profit. Principal reduces cash and debt but is not an operating expense. Enter the combined scheduled payment in a cash forecast and examine the opening months as well as annual totals. This calculator cannot determine approval, affordability or an SBA program’s permitted term.

Read the financial projection guide and the business-specific coffee shop or car wash financing page for the surrounding planning questions.

App coming soon

Start with your business.

Prepare a planning brief for your project.

The personalized plan generator is being built. You can prepare the information it will need:

  1. Your business format, location and opening scope.
  2. Supplier quotes, operating assumptions and owner contribution.
  3. Your funding goal and any instructions from your lender.
Open the preparation checklist

No order is placed and no payment is taken here.