Business Loan Calculator
Calculate your business loan's monthly payment, origination fee, and total cost of borrowing.
Monthly payment
$2,075.84
What Your Result Means
Net proceeds is what actually lands in your account after the origination fee is deducted from the loan amount - but your monthly payment and total interest are still calculated on the full loan amount, not the reduced net proceeds.
How It Is Calculated
Origination Fee = Loan Amount × Fee %
Monthly Payment = Loan Amount × [r(1+r)^n] / [(1+r)^n - 1]
Worked Example
A $100,000 loan at 9% for 5 years with a 2% origination fee has a $2,000 fee (leaving $98,000 net proceeds), a monthly payment of about $2,077, and total interest of roughly $24,600.
Important Assumptions
- Origination fees are typically deducted upfront from your loan proceeds, not added to your balance.
- SBA and bank loans often include additional closing costs not modeled here - ask your lender for a full fee breakdown.
Frequently Asked Questions
- What is an origination fee?
- A one-time fee lenders charge to process and fund a loan, typically 1-6% of the loan amount, deducted from your proceeds at closing.
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Methodology
This calculator uses the standard amortizing loan formula. See our methodology page for details.
Results depend entirely on the assumptions and figures you enter. Actual business performance may differ. This calculator does not provide accounting, tax, or legal advice.