Loan Amortization Calculator
Calculate your exact monthly payment and view a complete amortization schedule for any business acquisition loan. Enter your loan amount, interest rate, and term to see how each payment is split between principal and interest over the life of the loan.
This calculator is built for buyers financing a business purchase through SBA loans, conventional bank loans, or seller financing. Use it to compare different loan scenarios, understand your total interest cost, and make sure your monthly debt service fits within the business's cash flow.
Loan Details
How It Works
Monthly Payment: Calculated using standard amortization formula
Principal: Amount applied to loan balance each month
Interest: Cost of borrowing, decreases over time
Typical Loan Terms
Interest Rates
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Get pre approved for business acquisition financing. We work with multiple lenders to find you the best rates and terms for your situation.
Explore Funding Options →Quick Tips
- • Longer terms = lower payments but more interest
- • Early payments reduce total interest paid
- • Compare multiple loan offers
- • Factor loan payments into cash flow projections
How to Use This Calculator
Step 1: Enter Your Loan Amount
This is the total amount you need to borrow, not the purchase price. Subtract your down payment from the business acquisition price. For example, if you're buying a $500K business with 10% down, your loan amount is $450,000. Include any additional financing for working capital or closing costs if those are rolled into the loan.
Step 2: Enter Your Interest Rate
Use the annual interest rate quoted by your lender. SBA 7(a) loans are typically Prime + 2.75% (around 10-11% in the current market). Conventional bank loans range from 7-12% depending on your credit and the deal structure. If you're comparing multiple loan offers, run each scenario separately to see the payment difference.
Step 3: Select Your Loan Term
The loan term is how many years you have to repay. SBA 7(a) business acquisition loans allow up to 10 years. Conventional loans typically run 5-7 years. Seller financing terms are negotiable but usually fall between 5-10 years. A longer term lowers your monthly payment but increases total interest paid over the life of the loan.
Step 4: Review the Amortization Schedule
The schedule shows every monthly payment broken into principal and interest. Pay attention to how much interest you pay in the first few years versus the last few years. The total interest row tells you the true cost of borrowing. Compare your monthly payment against the business's net cash flow to confirm you can comfortably service the debt with a buffer for unexpected expenses.
SBA Loans vs. Conventional Loans for Business Acquisitions
SBA 7(a) Loans
- Term:Up to 10 years for business acquisitions
- Down Payment:As low as 10% of the purchase price
- Rates:Prime + 2.75% (capped for loans over $250K)
- Max Loan:Up to $5 million
- Timeline:45-90 days to close
- Best For:First-time buyers who need lower payments
Conventional Bank Loans
- Term:5-7 years typical for acquisitions
- Down Payment:20-30% of the purchase price
- Rates:7-12% depending on credit and collateral
- Max Loan:Varies by lender, often higher than SBA
- Timeline:2-4 weeks to close
- Best For:Experienced buyers with strong financials
Frequently Asked Questions
Ready to Finance Your Business Acquisition?
Now that you understand your loan payments, take the next step. Explore SBA loans, conventional financing, and alternative funding options to find the best fit for your deal.
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