Calculator Inputs
$
7.5
5
Results
$2,003.79
Monthly Payment
$20,227.69
Total Interest
$120,227.69
Total Repayment
60
Total Paymentspayments
Loan Payment Breakdown
Year-by-Year Breakdown
| Year | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $24,046 | $17,126 | $6,919 | $82,874 |
| 2 | $24,046 | $18,456 | $5,590 | $64,418 |
| 3 | $24,046 | $19,889 | $4,157 | $44,529 |
| 4 | $24,046 | $21,433 | $2,613 | $23,097 |
| 5 | $24,046 | $23,097 | $949 | $0 |
About This Calculator
Business Loan Types Compared
- Term Loan: Fixed monthly payments over a set period. Best for equipment, expansion.
- SBA 7(a): Government-backed, lower rates, longer terms. Requires strong credit.
- Line of Credit: Pay interest only on what you use. Best for working capital.
The line of credit option shows interest-only payments. The principal is repaid in a lump sum at the end of the term or when you draw down.
Frequently Asked Questions
What credit score do I need for a business loan?
SBA loans typically require 680+. Traditional bank term loans: 650+. Online lenders may approve 600+ but at higher rates. Lines of credit from banks need 680+, while online lines may accept 600+.
Are business loan interest payments tax-deductible?
Yes — interest paid on business loans is generally tax-deductible as a business expense. However, the principal repayment is not deductible (only the interest portion).