Enter your loan amount, rate, term, and origination fee — and see how financing the fee versus paying it upfront changes your payment and total cost.
The origination fee field defaults to 0% — so financing the fee and paying it upfront both give the exact same $3,033.19 monthly payment and $113,982.78 in total interest on the $250,000, 8%, 10-year default. The whole point of the toggle only becomes visible once a real fee is entered.
Financed, the fee adds to the balance: a $255,000 loan pays $3,093.85/month, $116,262.44 in total interest, for a total cost of $371,262.44 — no cash needed at closing. Paid upfront instead, the loan stays at $250,000 ($3,033.19/month, $113,982.78 interest) but needs $5,000 in cash on day one, for a combined total cost of $368,982.78. Financing costs $2,279.66 more in the end — the interest charged on the fee amount itself, for the full 10 years, exactly as if the fee were just more principal.
This page runs the identical amortization formula as every other loan calculator on the site; what makes a business loan distinct is everything around that formula — collateral, personal guarantees, and a qualification process the math itself says nothing about. For the same calculation applied to an individual borrower rather than a business, see the Personal Loan Calculator, for a general-purpose version with a full amortization schedule attached, the Loan Calculator; and to see that same schedule broken out payment by payment rather than as a summary, the Amortization Schedule Calculator.
An origination fee is a one-time charge, usually expressed as a percentage of the loan amount, that a lender collects for processing and issuing the loan. It can be handled two ways: added to the loan balance and financed over the term alongside the principal, or paid separately as cash upfront at closing. This calculator lets you toggle between both approaches to see the real difference.
Financing the fee means you also pay interest on that fee amount over the full loan term, which increases the total cost of the loan, but it preserves cash on day one when you might need it most. Paying the fee upfront costs less in total interest over time but requires more cash immediately at closing. Neither approach is universally better — it depends on how tight your available cash is right now versus the total cost you're willing to accept over the life of the loan.
No — the underlying amortization math is identical for SBA-backed loans and traditional bank or online lender loans once you know the amount, rate, and term. What differs is the qualification process, guarantee structure, and often the fees and interest rate itself, since SBA backing can let lenders extend more favorable terms than a purely conventional loan would otherwise offer.
Common requirements include business and personal tax returns, financial statements, a business plan, recent bank statements, and information on available collateral or personal guarantees. Exact requirements vary significantly by lender, loan size, and loan type, so confirm the specific checklist directly with whichever lender you're applying through.
Worked example: a $250,000 loan at 8% over 10 years with a 2% origination fee. If the fee is financed, the loan balance becomes $255,000, the monthly payment is $3,093.85, and total interest over the term is $116,262.44, for a total cost of $371,262.44 — with no separate cash needed upfront. If instead the fee is paid upfront, the payment drops to $3,033.19 on the original $250,000, total interest falls to $113,982.78, and you need $5,000 in cash upfront, for a total cost (loan payments plus the upfront fee) of $368,982.78 — about $2,279.66 less than financing the fee, the cost of the interest charged on that fee amount.
If the loan is going toward stock rather than equipment or premises, VenStock — a desktop stock register app for small retailers — is worth a look for tracking what that financing actually buys, item by item.
Comparing against a smaller loan instead? See the Personal Loan Calculator. Financing equipment specifically? See the Depreciation Calculator.