A business loan’s monthly payment follows the same amortising-loan math as a mortgage or auto loan — but commercial lending commonly adds an origination fee that this calculator accounts for separately.
How it works
The payment is calculated on the full loan amount, the same standard amortisation formula used throughout this site. The origination fee — often a percentage of the loan, common on SBA-guaranteed and other commercial loans — is then subtracted to show what actually reaches the business at closing. The fee reduces what you receive; it does not reduce what you owe or pay each month.
Why the fee matters beyond the sticker rate
Two loans with an identical interest rate and monthly payment can cost meaningfully different amounts if one carries a much larger origination fee — the cash in hand at closing is lower, even though the repayment schedule looks the same.
How to use this calculator
- Enter the loan amount, annual interest rate, and term in years.
- Enter the origination fee, if any, as a percentage of the loan.
Frequently asked questions
Is the origination fee paid upfront or added to the loan?
This varies by lender — often it’s deducted from the amount disbursed, which is what this calculator assumes; some lenders instead roll it into the loan balance, which would change the payment itself.
Why is my actual monthly payment different from this estimate?
Variable-rate loans, balloon payments, and additional fees (guaranty fees, servicing fees) can all change the real schedule — this covers the standard fixed-rate, fully amortising case.
