What a business loan amortization schedule shows
An amortization schedule lists every payment on a loan and splits it into interest and principal. Your payment stays the same, but early payments are mostly interest. As the balance falls, more of each payment goes to principal. The schedule above shows that month by month, or year by year, and you can download it as a CSV file to open in Excel or Google Sheets.
Worked example
A $100,000 loan at an example rate of 11% over 5 years has a payment of about $2,174 a month. In the first year you pay about $10,215 in interest, and total interest over the life of the loan is about $30,455.
How extra payments save money
Any amount you pay above the scheduled payment goes straight to principal, so the next month's interest is calculated on a smaller balance. Enter an extra monthly payment to see how much interest you save and how many months earlier the loan is paid off. Before you prepay, check your agreement for prepayment penalties. Some short-term business loans and most merchant cash advances do not reduce the cost when you pay early.
Amortizing loans vs. other financing
- Term loans and SBA loans amortize the way this calculator shows.
- Lines of credit often have interest-only or revolving payments. Use the line of credit calculator.
- Merchant cash advances use a fixed payback amount instead of interest. Use the MCA calculator to see the estimated APR.
More free calculators
Add this calculator to your website (free)
Bookkeepers, accountants, and small-business sites are welcome to embed this calculator for free. Copy the snippet below; it links back to the live tool.
Frequently asked questions
What is an amortization schedule for a business loan?
It is a table of every loan payment showing how much goes to interest, how much goes to principal, and the balance left after each payment.
Why is most of my early payment interest?
Interest is charged on the outstanding balance, which is highest at the start. As you pay principal down, the interest part of each payment shrinks and the principal part grows.
Can I download the amortization schedule to Excel?
Yes. Click Download CSV to save the schedule, then open the file in Excel or Google Sheets.
How much do extra payments save on a business loan?
Enter an amount in the extra payment field to see the interest saved and how many months sooner the loan is paid off. Check your loan agreement for prepayment penalties first.
Does this work for SBA loans?
Yes, for fixed-rate SBA loans. Many SBA 7(a) loans have variable rates, so actual payments can change when the rate resets.
Sources
- 7(a) loan program terms, conditions, and eligibility, U.S. Small Business Administration
Disclaimer: This calculator is for educational and comparison purposes only and does not constitute a loan offer, financial advice, tax advice, or a guarantee of terms. Example values are illustrations, not quotes. SmallByzLoans is a funding marketplace, not a lender or financial advisor.