How a business loan payment is calculated
A traditional business term loan uses amortization — each fixed monthly payment covers the interest due that month plus a slice of the principal, until the balance reaches zero. Early payments are mostly interest; later payments are mostly principal. The calculator above uses the standard amortization formula, the same one every bank and funder uses.
Worked example
What each input means
Loan amount
The principal you borrow. Through The Broker Shop, funding ranges from $5,000 to $2 million. The amount you qualify for is driven mainly by your monthly revenue and time in business — most owners qualify for more than they expect.
Interest rate (APR)
Your APR depends on your credit profile, revenue, time in business, and industry. Bank and SBA loans price lowest (roughly 9–15%); online and alternative funders price higher (15–45%) but fund faster and approve a wider range of businesses. Because we match you to the right funders, you see the lowest rate any of them will offer — not just one funder's number.
Term length
How long you take to repay. A longer term lowers the monthly payment but increases total interest; a shorter term does the opposite. Pick the shortest term whose payment your cash flow can comfortably handle.
How to lower your payment and total cost
- Shop multiple funders. One direct application gives you one rate. A broker submits to many funders at once, and competition drives the rate down.
- Strengthen your file first. Clean bank statements (no NSFs), steady deposits, and 600+ credit all lower your rate.
- Match the term to the use. Don't finance a 6-month cash-flow gap over 5 years — you'll pay far more interest than you need to.
- Watch for fees. Origination and underwriting fees affect your real cost beyond the rate shown here.
The Broker Shop is a funding broker, not a funder — our service is 100% free to you, and we're paid by the funder only when your deal closes, which is why we're motivated to find your best rate.