A business loan calculator is a critical tool for a start-up business searching for a business loan. It will help you to save time and effort. This is done by letting you project the amount of money that you will need to pay each month to pay off the interest and principal of your future loan.  It is important to note that it is sometimes referred to as a business loan amortization calculator. It is the same tool. So here it works: Firstly, you will need to input your loan amount. This can be a real amount or a projection of what you think you might need.  Secondly, you will need to put in the interest rate percentage and the term (in other words the time you will need to pay off this loan.) The calculator assumes a 5% interest rate. You will have to get some quotes from financial services providers to find an accurate figure. Interest rates depend on the lending climate at the time, your financial history, the nature of the business, and collateral. Otherwise, you can take estimated figures and work with an estimated result to get started.  Once these values have been inserted into the loan calculator, you have your answer! This will show you the amount that you need to pay each month to cover both the capital amount borrowed and the interest amount on your small business loan.