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//// Financial · Business Loans

Business Loan Calculator

Monthly payment, total interest, true APR including origination fees, 12-month amortization table, and a break-even analysis to determine whether the loan actually pays for itself.

401(k) Limit 2024$23,000
Roth IRA Limit$7,000
S&P 500 Avg Return~10%/yr

Monthly Payment

$1,578.38

Total Interest

$6,822

over loan term

True APR

0.10%

Net Benefit

$100,178

Is This Loan Worth It?

Yes — generates $100,178 more than it costs

Break-even: month 3 of 36 · ROI on loan cost: 12.81%

Loan Details

$
%
mo
%
$/mo

Net Proceeds

$49,000

Total Paid

$56,822

Cost of Capital

$7,822

Monthly Equivalent

$1,578.38

Amortization — First 12 Months

PeriodPaymentPrincipalInterestBalance
1$1,578.38$1,224.21$354.17$48,775.79
2$1,578.38$1,232.88$345.50$47,542.91
3$1,578.38$1,241.61$336.76$46,301.29
4$1,578.38$1,250.41$327.97$45,050.88
5$1,578.38$1,259.27$319.11$43,791.62
6$1,578.38$1,268.19$310.19$42,523.43
7$1,578.38$1,277.17$301.21$41,246.26
8$1,578.38$1,286.22$292.16$39,960.05
9$1,578.38$1,295.33$283.05$38,664.72
10$1,578.38$1,304.50$273.88$37,360.22
11$1,578.38$1,313.74$264.63$36,046.48
12$1,578.38$1,323.05$255.33$34,723.43

Showing first 12 of 36 periods

1

Origination Fee

= $1,000

One-time upfront fee deducted from loan proceeds. You borrow $50k but receive $49k if fee is 2%. SBA 7(a) loans: 0.5–3.5% depending on amount.

2

Net Proceeds

= $49,000

What actually hits your account. Use this for ROI analysis — not the face value of the loan.

3

Monthly Payment (PMT formula)

= $1,578.38

r = 0.7083% per period, n = 36 periods. Standard amortizing loan formula — early payments are mostly interest.

4

Total Amount Paid

= $56,822

Every dollar out of pocket over the life of the loan, before accounting for the origination fee.

5

Total Interest Cost

= $6,822

The pure cost of borrowing. Shorter terms and extra payments dramatically reduce this number.

6

Total Cost of Capital

= $7,822

The complete all-in cost of the loan. This is the hurdle your investment must clear to justify borrowing.

7

True APR (Newton-Raphson)

= 0.10%

APR includes the origination fee — always higher than the stated interest rate. Required by Truth in Lending Act (TILA) for consumer loans.

8

Total Expected Revenue Increase

= $108,000

What you expect the loan investment to generate over its term. Conservative estimates are safer — use your worst-case scenario.

9

Net Benefit

= $100,178

Positive — the loan generates more revenue than it costs. Proceed if revenue estimates are reliable.

10

ROI on Loan Cost

= 12.81%

Return on the cost of capital. Target 100%+ (loan generates 2× its cost). Below 0% means the loan destroys value.

11

Break-Even Month

= Month 3

How many months until cumulative revenue covers total loan cost. Should be well within the loan term.

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