Business loan calculator

Know your payments
before you borrow

Enter your loan amount, interest rate, and term to estimate monthly payments, total interest, and total repayment. Then compare financing options, including 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.

Compare financing options

Shopify Capital offers eligible businesses funding based on sales history, with repayments that adjust to daily sales.
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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 with interest. Each payment covers part of the principal plus interest on the remaining balance. Longer terms usually lower the monthly payment and increase total interest. Use the calculator to compare the monthly payment, total repayment, and cost of borrowing before you choose a loan.

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

Shorter vs. longer terms

Shorter terms usually cost less overall

Borrow $50,000 at 10%: a 3-year term is about $1,613 per month and $8,070 in interest. A 7-year term is about $830 per month and $19,750 in interest. The lower monthly payment costs about $11,680 more.

Run your business with Shopify

After you estimate your loan costs, see how Shopify can help you access funding if you're eligible, manage operations, and keep more of every sale.
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Shopify Capital

Eligible Shopify merchants can receive funding in as quick as 2 business days, if approved, with repayments that adjust to daily sales.
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All in one platform

Manage shipping, inventory, and marketing in one place. No switching between tools or surprise costs eating into your margins.
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Lower transaction fees

Shopify charges lower fees than fifty other ecommerce platforms, even when you use third-party payments. Lower fees mean you keep more of every sale.
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Free tools to help you grow your business

Use these tools for pricing, naming, and invoicing.
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Calculate profit margins

Enter cost and price to see profit margin and profit per item.
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Generate business names

Enter keywords to get business name ideas.
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Create invoices

Generate invoices to bill customers and track payments.
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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.

How do extra monthly payments change my loan?

Extra payments reduce the principal faster. That can shorten the payoff time and lower total interest. Turn on Advanced mode and enter an extra monthly payment to compare the difference.

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

A longer term lowers the monthly payment, but the balance accrues interest for more months. More months of interest increase the total cost of borrowing.

How do I use my monthly payment estimate?

Compare the monthly payment with the cash your business reliably brings in. If the payment leaves too little room for payroll, inventory, rent, taxes, or slow months, try a smaller amount or a longer term.

What costs should I factor in beyond the interest rate?

Look for origination fees, application fees, late-payment penalties, prepayment charges, required insurance, and collateral. APR rolls many fees into 1 number, which makes it useful for comparing offers.

Shopify

Start selling online

3 days free

Extend your trial for €1

Earn up to €7,000 in credits

You agree to receive Shopify marketing emails.