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Business & Enterprise

Business Loan Amortization Schedule Calculator

Monthly payment, origination fee cost, and a full amortization schedule for a business or commercial loan.

Formula reviewed against standard fixed-rate amortization formulas · Last checked Aug 2026 · methodology
Formula

How the payment and fee are calculated

M = P × r(1+r)ⁿ ÷ [(1+r)ⁿ − 1]
MFixed monthly payment
PLoan principal
rMonthly interest rate — annual rate ÷ 12
nTotal number of monthly payments
Net proceedsP − (P × origination fee %)
Worked example

$250,000 at 9.5% for 7 years, 2% origination fee

A $250,000 loan at 9.5% over 7 years carries a monthly payment of roughly $4,050 and about $90,000 in total interest. A 2% origination fee ($5,000) is deducted up front, so the business nets $245,000 in usable proceeds while still repaying the full $250,000 principal — bringing the true total cost of capital to roughly $95,000.

FAQ

Common questions

A loan origination fee is a one-time charge lenders deduct up front to cover underwriting costs — commonly 1–6% of the loan amount for commercial and SBA loans. It's typically subtracted from the amount you actually receive, not added to your balance, so a $250,000 loan with a 2% fee nets $245,000 in usable funds even though you still repay the full $250,000 plus interest.

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