Business loan calculator

Know your payments
before you borrow

See your monthly payment and total interest in seconds. Enter your loan amount, rate, and term to find out what borrowing really costs — then explore funding with Shopify Capital.

$
Annual interest rate
%
0
30%

Key metrics

$783.41

Estimated monthly payment

Total repayment$28,202.73
Total interest$3,202.73
Payoff time3 years

Repayment breakdown

12.8%Cost of borrowing
Interest
11.4%
Principal
88.6%

Looking affordable. With a 8% rate over 3 years, your monthly payment is $783.41 and you'll pay $3,202.73 in total interest — a 12.8% cost of borrowing.

You found an affordable path to growth.

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What is a business loan?

Monthly payment = P × r(1+r)ⁿ ÷ [(1+r)ⁿ − 1] (P = amount, r = monthly rate, n = number of payments)

A business loan is money you borrow and repay over time, plus interest — the lender's fee for letting you use the funds. Your monthly payment covers a slice of what you borrowed (the principal) plus interest on the balance that's left. The longer you take to repay, the more interest you pay, so the total cost of a loan is almost always more than the amount you borrow. Knowing that cost up front helps you borrow an amount you can comfortably repay and choose a term that keeps your business healthy.

A visual comparison of a shorter loan term versus a longer loan term.

Shorter vs. longer term

A shorter term means higher monthly payments but far less interest. A longer term lowers the monthly payment but costs more overall.

Borrow $50,000 at 10%: a 3-year term runs about $1,613/month and ~$8,070 in interest, while a 7-year term drops to about $830/month but costs ~$19,750 in interest. A lower monthly payment can mean a higher cost of borrowing.

Know your cost of borrowing. Fund growth with confidence.

You've run the numbers. Now fund your next move with financing built for the way you sell.
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A funding offer interface showing an approved amount and a quick acceptance flow.

Funding in as little as 1–2 business days

Shopify Capital uses your sales history to make an offer — no lengthy bank process. Get approved and put cash to work fast.
A dashboard showing repayments adjusting automatically with daily sales.

Repay as you earn

Repayments flex with your daily sales, so you pay more on busy days and less on slow ones. No fixed monthly bill to stress over.
A simplified eligibility screen with a single flat fee and no credit-check requirement.

No lengthy applications or credit checks

Eligibility is based on your Shopify sales, not a personal credit score. One flat fee, no compounding interest, no surprises.
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Planning your finances? These tools pair perfectly with this calculator.
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Frequently asked questions

What's a typical interest rate for a small business loan?

It varies widely by lender and your business profile, but rates often range from about 6% to 30%. Banks and SBA loans tend to be lower, while online lenders and short-term financing are usually higher. Use this calculator to see how different rates change your monthly payment and total cost.

What's the difference between a term loan and a line of credit?

A term loan gives you a lump sum you repay in fixed payments over a set period — best for one-time investments. A line of credit lets you borrow, repay, and borrow again up to a limit, paying interest only on what you use — best for ongoing or unpredictable expenses.

How do extra monthly payments change my loan?

Paying extra each month goes straight to your principal, so you owe less and accrue less interest. That shortens your payoff time and lowers the total interest you pay. Turn on Advanced mode and add an extra payment to see the difference.

Why does a longer term cost more at the same interest rate?

A longer term lowers your monthly payment, but you carry the balance — and pay interest on it — for more months. Even at the same rate, more months of interest add up to a higher total cost of borrowing.

How do I use my monthly payment estimate?

Compare the monthly payment to the cash your business reliably brings in. A safe rule of thumb is to keep loan payments to a comfortable share of monthly revenue so you can cover them even in a slow month. If the payment feels tight, try a smaller amount or a longer term.

What costs should I factor in beyond the interest rate?

Look past the rate for origination or application fees, late-payment penalties, prepayment charges, and any required insurance or collateral. The annual percentage rate (APR) rolls many fees into one figure, making it the best number for comparing offers fairly.

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Earn up to $8,000 in credits

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