Business loan interest rate calculator.

How it is calculated

The interest rate is the rate per period at which the payments, discounted back, equal the amount borrowed; the page solves it numerically and multiplies by payments per year for the annual rate. The APR with fees solves the same equation against the money you actually receive (amount minus fees), so fees raise it. The effective annual rate compounds the periodic rate over a year. The factor rate equivalent is total repaid divided by amount borrowed.

Worked example

$50,000.00 repaid at $1,011.55 for 60 months is $60,693.00 in total. That works out to an interest rate of 7.91% (8.20% effective), a factor rate equivalent of 1.2139, and, with $1,000.00 in fees deducted, an APR of 8.76%.

Sources and limits

The method is the standard internal rate of return on the loan's cash flows; no lender data is used. The formal Truth in Lending APR rules do not apply to business credit (12 CFR 1026.3(a), retrieved 2026-10), so lenders may quote rates in different ways, which is why comparing the implied APR matters. For Canadian loans, see the criminal interest rate checker. The result assumes equal payments at the end of equal periods; real loans with daily interest or irregular payments will differ slightly.

FAQ

How do I find the interest rate on a business loan?

Enter the loan amount, the payment, the number of payments and how often they are made. The page solves for the rate that makes those payments repay the amount.

What is the difference between the interest rate and the APR?

The interest rate looks only at interest. The APR here also includes fees deducted from the funds, so it is higher when there are fees.

Can I convert a factor rate to an interest rate?

Yes. Enter the amount, the payment and the number of payments; the factor rate equivalent is shown with the interest rate. For merchant cash advances see the merchant cash advance calculator.

Why does the page say no rate fits?

If the payments add up to less than the amount borrowed, no non-negative rate can produce them. Check the inputs.