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Business Loan Cost Comparison Calculator

A lower note rate is not always cheaper. Compare the net funding you actually receive as well as payments and fees.

Business Loan Cost Comparison Calculator estimate

Face amount for each offerOffer A note interest rate (%)Offer A term (months)Offer A fees deducted at fundingOffer B note interest rate (%)Offer B term (months)Offer B fees deducted at funding

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Your estimate

Enter values, then calculate.

How the estimate works

Fees are deducted from the face amount at funding. Monthly payments amortize the full face amount at the note rate. The fee-adjusted rate solves for the monthly discount rate at which those payments equal the net cash received, then multiplies it by 12.

Method source

CFPB: interest rates and fees in loan comparisons. Background guidance; the assumptions and specific model are described above.

Important limitation

Fixed-rate equal monthly payments only. No balloon, daily repayment, deferred payment, variable rates, financed fee option or prepayment is assumed. A lower lifetime dollar cost can reflect less usable funding or a shorter term; there is no automatic winner. Results are estimates only and are not financial, lending, legal, tax, or investment advice.

Assumptions and review

Formula review: September 25, 2026. This tool uses only the editable values shown above and does not pull live rates, prices, balances, or account data.

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See this calculator in a worked example

Follow the assumptions and results, then try the example with your own numbers.

A lower business-loan rate can hide a larger borrowing cost — Compare two hypothetical $10,000 business loans: 10% with $1,000 deducted fees versus 12% without fees. Follow usable proceeds and repayments.

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Frequently asked questions

Why is the estimated rate above the note rate?

Fees reduce the cash you receive while repayments still amortize the face amount. The implied borrowing rate reflects that smaller starting cash inflow.

Is this the lender's legally disclosed APR?

No. It is an estimated annualized monthly IRR for these cash flows. Required disclosures and included charges vary; obtain the actual lender documents.

Can I compare different repayment schedules?

This version supports equal monthly fixed-rate payments. Different terms are allowed, but daily/weekly payments, balloons and variable rates are outside the model.