Business Loan Payoff Calculator: Time and Interest to Clear It
See how long a business loan takes to clear at a fixed monthly payment, and how much of that money is pure interest rather than principal.
Adjust the inputs and select Calculate for a full breakdown.
Year-by-year payoff schedule
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Time to pay off | Total interest | Total paid |
|---|---|---|---|
| $50k · 9% · $1,100/mo | 4y 8m | $11,374.10 | $61,374.10 |
| $15k · 12% · $500/mo | 3 years | $2,923.09 | $17,923.09 |
| $250k · 7.5% · $3,500/mo | 7y 11m | $82,198.78 | $332,198.78 |
| $8k · 18% · $400/mo | 2 years | $1,582.61 | $9,582.61 |
How This Calculator Works
Enter the current balance, the APR, and the fixed monthly payment. The calculator charges interest on the balance each month, subtracts the payment, and counts the months until the balance is gone. It also flags a payment too small to outpace the interest.
The Formula
Debt Payoff Time
B = balance, P = fixed monthly payment, r = monthly rate (APR ÷ 12), n = months to clear
Worked Example
A $50,000 business loan at 9% APR paid down at $1,100 a month clears in 56 months — just under five years — with about $11,374 of interest along the way. The total repaid is roughly $61,374, so interest adds nearly a quarter on top of the original draw.
Key Insight
Business loan payoff math is the same as any other amortization — but the bigger lever is often refinancing into an SBA or term loan once the business has track record. Replacing a high-rate working-capital loan with a 7%-ish SBA loan typically cuts the interest paid by half over the life of the debt.
Frequently Asked Questions
What if my payment is below the monthly interest?
The balance grows rather than falls and the loan never pays off. The calculator flags this. Either raise the monthly payment or refinance into a longer-term, lower-rate loan.
Can I include the origination fee?
Roll it into the balance if the lender did. The calculator works on whatever balance you enter, so an inflated principal correctly reflects what was actually drawn against the cash you received.
What about a balloon payment at the end?
Standard amortization assumes the balance reaches zero through regular payments. A balloon loan front-loads interest and ends with a large principal payment — use a balloon-specific calculator instead.
How does this compare with an SBA loan?
SBA loans typically run lower APRs and longer terms than conventional business loans. Refinancing into one almost always cuts the monthly payment, total interest, or both — at the cost of personal guarantee and slow underwriting.
Is paying off early always worth it?
Usually, but check for prepayment penalties. Term loans often charge a small fee for early payoff in the first year; SBA 7(a) loans charge no penalty after the third year.
Related Calculators
Data Sources & Benchmarks
This calculator draws on 2 independent, dated sources. The starting values for loan apr are taken from the benchmarks below and refresh whenever the snapshots are updated.
Methodology & Review
The payoff is simulated month by month: interest is charged on the balance, the fixed payment is deducted, and the months are counted until the balance reaches zero. Origination fees, prepayment penalties, and balloon payments are not modeled — fold those into the balance or pick a different calculator.
Written by Ugo Candido · Last updated May 17, 2026.