Payment math
What a $100,000 business loan costs each month at 8% to 20% over 1 to 25 years, with total interest, computed with the standard amortization formula. All figures are illustrative.
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Short answer: at an illustrative 10% APR, a $100,000 business loan costs about $8,791.59 a month over 1 year, $2,124.70 over 5 years, $1,321.51 over 10 years and $908.70 over 25 years. The longer term cuts the payment but raises total interest from $58,581.20 (10 years) to $172,610.00 (25 years).
Published . Figures are illustrative arithmetic, not quotes or offers.
Merchant Fund Express publishes its business term loan at $10K–$250K, with the loan amount capped at 15% of annual revenue and terms of 12 to 18 months, and its business line of credit at $10K to $350K, from 1% per month with a 2.49% fee per draw. Because the term-loan amount is capped at 15% of annual revenue, a $100,000 term loan here implies annual revenue of at least $666,667. The published term is 12 to 18 months with weekly payments, so the 12-month column below is the closest match to that product; the longer columns show how other loan types price the same amount.
Each cell is the monthly payment that fully repays $100,000 over the term shown at the rate shown. Rates are examples chosen to show the range; they are not market averages and not what any funder will offer you.
| Rate (APR) | 1 yr | 2 yr | 3 yr | 5 yr | 10 yr | 25 yr |
|---|---|---|---|---|---|---|
| 8% | $8,698.84 | $4,522.73 | $3,133.64 | $2,027.64 | $1,213.28 | $771.82 |
| 10% | $8,791.59 | $4,614.49 | $3,226.72 | $2,124.70 | $1,321.51 | $908.70 |
| 12% | $8,884.88 | $4,707.35 | $3,321.43 | $2,224.44 | $1,434.71 | $1,053.22 |
| 15% | $9,025.83 | $4,848.66 | $3,466.53 | $2,378.99 | $1,613.35 | $1,280.83 |
| 20% | $9,263.45 | $5,089.58 | $3,716.36 | $2,649.39 | $1,932.56 | $1,678.45 |
Read across a row to see the term effect and down a column to see the rate effect. Going from 1 year to 5 years at the same rate cuts the payment by roughly three quarters, while doubling the rate from 10% to 20% on a 10-year term raises the payment by about half.
The monthly payment is only half the decision. The table below shows what the same loan costs in total when you stretch the term.
| Term | Monthly payment | Total repaid | Total interest |
|---|---|---|---|
| 1 years (12 payments) | $8,791.59 | $105,499.08 | $5,499.08 |
| 2 years (24 payments) | $4,614.49 | $110,747.76 | $10,747.76 |
| 3 years (36 payments) | $3,226.72 | $116,161.92 | $16,161.92 |
| 5 years (60 payments) | $2,124.70 | $127,482.00 | $27,482.00 |
| 10 years (120 payments) | $1,321.51 | $158,581.20 | $58,581.20 |
| 25 years (300 payments) | $908.70 | $272,610.00 | $172,610.00 |
A useful habit is to pick the shortest term whose payment your normal monthly cash flow can carry, not the longest term available.
The monthly payment on an amortizing loan is P × i ÷ (1 − (1 + i)−N), where P is the amount borrowed, i is the annual rate divided by 12 and N is the number of monthly payments. For $100,000 at 10% over 10 years, i is 0.10 ÷ 12 and N is 120, which gives $1,321.51. Payments are rounded to the cent and total repaid is that payment times N.
Three things this math leaves out: origination or packaging fees taken from proceeds, prepayment terms, and payment frequency. A weekly schedule has 52 payments a year, so the per-payment figure is smaller and the interest shifts slightly. Use the term loan payment calculator to test your own amount, rate, term and fee.
Ask any funder for the payment amount, the number of payments and the total of all payments in writing before you sign. Those three numbers let you check the math yourself.
At $100,000, a term loan, a line of credit or an SBA loan can all fit. A term loan suits a single, known cost. A line suits uneven needs, because interest runs only on what you draw and each draw re-amortizes over 12 to 36 months. An SBA loan is usually cheaper and much slower. Compare them in business loan vs line of credit and check the thresholds in funding requirements.
At an illustrative 10% APR it is about $8,791.59 over 1 year, $2,124.70 over 5 years, $1,321.51 over 10 years and $908.70 over 25 years. Your actual rate and term depend on the lender and your file.
No. They are illustrative arithmetic from the standard amortization formula. They are not offers and not market averages.
About $58,581.20 in total interest, assuming equal monthly payments and no fees.
Possibly. The published term loan runs $10K to $250K, capped at 15% of annual revenue, with 12 to 18 month terms. $100,000 requires annual revenue of at least $666,667.
Interest accrues on the outstanding balance every month. A longer term keeps the balance higher for longer, so total interest rises even as the payment falls.
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