Business Loan Calculator

How these calculators work

Loan payment calculator

Uses the standard amortization formula: P = L × (c × (1+c)^n) / ((1+c)^n − 1) where L is the loan amount, c is the monthly interest rate (APR / 12), and n is the number of monthly payments. This is how banks and most installment lenders compute monthly payments.

Factor rate ↔ APR converter

Factor rates are used by merchant cash advances, revenue advances, and some short-term business loans. A 1.30 factor on $50,000 means total repayment is $65,000. To translate that into an APR equivalent for apples-to-apples comparison with traditional loans: APR ≈ ((Factor − 1) / Term in Years) × 100. This is an approximation — state commercial-financing disclosure laws use more precise formulas, but the rough number is enough for comparing offers.

MCA payback calculator

Most revenue advances are repaid via a fixed daily ACH debit. To estimate the payback timeline, divide total repayment (advance × factor rate) by the daily payment amount. The result is business days (Monday–Friday), which we also convert to approximate calendar months for easier planning. True merchant cash advances (with daily holdback against card sales) have variable payback that depends on sales volume; this calculator approximates them as fixed daily advances.

These calculators are educational tools and not offers of credit. Actual loan terms depend on your credit profile, business revenue, and individual lender underwriting.