The business loan comparison calculator lets you compare up to 3 loan options side-by-side. Enter loan amount, interest rate, fees, and term to see the true total cost of each option.
Loan Option 1
Loan Option 2
Loan Option 3
How to Compare Business Loans
The business loan comparison calculator reveals the true cost of each option. Don't just compare interest rates — include origination fees and compare total interest paid over the life of the loan.
Total Cost of Capital
A loan at 9.5% over 36 months costs less total interest than 11.5% over 60 months, even though the rate is lower. Always compare total interest paid, not just the rate. Shorter terms reduce total cost but increase monthly payments — ensure your cash flow can handle it.
APR vs. Interest Rate
APR (Annual Percentage Rate) includes origination fees amortized over the loan term. A loan with a 10% rate and $5,000 fee has a higher APR than the stated rate. This tool calculates the true APR so you can make a fair comparison across lenders with different fee structures.
Frequently Asked Questions
How do I compare business loan options?
Compare the Annual Percentage Rate (APR), not just the interest rate. APR includes fees and origination costs. Also compare total cost of capital over the loan term, monthly payment vs. cash flow, and prepayment penalties.
What is a good business loan interest rate?
SBA 7(a) loans: 10-13% APR. Bank term loans: 6-12%. Online lenders: 15-40%. Merchant cash advances: 50-300% effective APR. Always calculate the effective APR including fees — some 'low-rate' loans have high origination fees that make them expensive.
What is a factor rate vs. interest rate?
Factor rates (used by MCAs and some online lenders) are multipliers like 1.2-1.5. A $50,000 advance at 1.3x factor rate means you repay $65,000. Unlike interest rates, factor rates don't decrease with early repayment — paying early doesn't save money.
Is this calculator free?
Yes, completely free with no signup. Compare up to 3 loan options instantly.