Business loan calculator
Estimate the monthly repayment and total cost of a business loan from the amount, interest rate and term you choose.
How this calculator works
The calculator assumes a standard repayment loan: the same payment every month, covering interest and part of the capital, so the balance is cleared by the end of the term. The monthly payment is worked out with the usual amortisation formula, using the annual rate divided by twelve.
Total interest is everything you pay over the term less the amount borrowed. If you enter an arrangement fee, it is shown as a separate cost; in practice a lender may add it to the loan or deduct it from the amount paid out.
What lenders will look at
Lenders price a loan on the business behind it: trading history, profitability, existing debt, credit record, and whether there is security or a personal guarantee. Two businesses borrowing the same amount over the same term can be offered very different rates.
Some loans are structured differently, with interest-only periods, seasonal payments or a fixed total charge rather than an interest rate. Ask for the total amount repayable when you compare offers, not just the monthly figure. Our guide to business loan interest rates explains how pricing works.
Working out a short-term property bridge rather than a term loan? Bridging is priced monthly and interest is often retained or rolled up, so use our bridging loan calculator instead.
Business loan repayments at different interest rates
The rate makes a bigger difference than most borrowers expect. The table shows a £50,000 repayment loan over 5 years at four rates, worked out the same way as the calculator above. It is arithmetic, not a quote, and leaves out fees.
| Annual interest rate | Monthly repayment | Total interest over 5 years |
|---|---|---|
| 6% | £967 | £7,998 |
| 9% | £1,038 | £12,275 |
| 12% | £1,112 | £16,733 |
| 15% | £1,190 | £21,370 |
Moving from 9% to 12% adds about £74 a month and £4,458 in interest over the term. For the rates lenders actually publish, see our guide to business loan interest rates in the UK.
Monthly repayments on a £30,000 to £1 million business loan
Most people searching for a repayment figure have an amount in mind already. The table shows the monthly payment on a repayment loan at an illustrative 9% a year over 3 years and over 5 years, with the interest paid over 5 years, worked out the same way as the calculator above. It is arithmetic, not a quote, and leaves out fees. Larger loans are often secured or structured differently, so the rate you are offered may be lower or higher.
| Loan amount | Monthly repayment over 3 years | Monthly repayment over 5 years | Total interest over 5 years |
|---|---|---|---|
| £30,000 | £954 | £623 | £7,365 |
| £50,000 | £1,590 | £1,038 | £12,275 |
| £100,000 | £3,180 | £2,076 | £24,550 |
| £200,000 | £6,360 | £4,152 | £49,100 |
| £500,000 | £15,900 | £10,379 | £122,751 |
| £1,000,000 | £31,800 | £20,758 | £245,501 |
The figures scale with the amount, so a £150,000 loan on the same terms costs about one and a half times the £100,000 figure. At 12% over 5 years the monthly payment on £100,000 rises to about £2,224. Lenders also check the payment is affordable from your profits, so the useful figure to compare is the repayment against your monthly profit. Our debt service coverage calculator shows how lenders test that, and our guide to business loan comparison shows how to weigh two offers for the same amount.
Using a loan calculator for UK business borrowing
Enter the annual interest rate from your offer, not a monthly or flat rate. Bank of England Bank Rate rose from 3.75% to 4% on 5 November 2026 (Bank of England, Bank Rate), as our report on the Bank Rate rise to 4% explains, and a variable rate business loan is usually priced as a margin above it, so if Bank Rate moves, run the calculator again with the new rate. A fixed rate loan keeps the same repayment for the whole term.
If a lender quotes a flat rate, the calculator will understate the cost, because a flat rate charges interest on the full amount for the whole term. Ask for the total amount repayable and compare that instead. To put offers from several lenders side by side, use our guide to comparing UK business loan providers.
Find out more about unsecured business loans, or tell us what you need and we will search the market for lenders suited to your case.
Questions about this calculator
How are business loan repayments calculated?
On a standard repayment loan, each monthly payment covers that month’s interest plus part of the capital. Early payments are mostly interest; later payments are mostly capital. The payment stays the same if the rate is fixed.
Does a longer term make a loan cheaper?
A longer term lowers the monthly payment but usually increases the total interest, because the balance is outstanding for longer. Use the calculator to compare both figures before choosing a term.
Can I use this for a Growth Guarantee Scheme or franchise loan?
Yes. Both are usually ordinary term loans, so the same calculation applies. The guarantee or the franchise does not change how repayments are worked out; the lender sets the rate, fees and security. See our guide to the Growth Guarantee Scheme and our page on franchise loans.
How much would a £50,000 business loan cost per month?
At 9% a year over 5 years, a £50,000 repayment loan works out at about £1,038 a month, with about £12,275 of interest over the term before fees. Over 3 years at the same rate the payment rises to about £1,590 a month but the interest falls. Enter your own figures above to see the exact result.
What interest rate should I enter in a business loan calculator?
Use the annual rate in your offer. If you do not have an offer yet, the typical starting rates lenders on our panel publish are a guide; unsecured business loans typically started at 11.25% to 21.5% a year in October 2026. Our page on how much a business loan costs shows the ranges for each type of finance.
Can I use this calculator for a flat rate loan?
Not directly. The calculator charges interest on the reducing balance, while a flat rate charges it on the full amount for the whole term, so a flat rate entered here will understate the cost. Ask the lender for the total amount repayable, or see our guide to business loan interest rates for how flat and annual rates compare.
Does a change in Bank Rate change my loan repayments?
Only on a variable rate loan, which is usually priced as a margin above Bank of England Bank Rate, which rose from 3.75% to 4% on 5 November 2026. A quarter point rise adds about £250 a year in interest for every £100,000 of borrowing that tracks Bank Rate. If Bank Rate rises or falls, enter the new rate to see the new repayment. A fixed rate loan keeps the same repayment for its whole term.
What is the monthly payment on a £100,000 business loan?
At an illustrative 9% a year, a £100,000 repayment loan costs about £2,076 a month over 5 years, or about £3,180 a month over 3 years. Over 5 years you would pay about £24,550 of interest before fees. The rate you are offered depends on the lender, your trading figures and whether the loan is secured, so enter your own figures above.
What is the monthly payment on a £500,000 business loan?
At an illustrative 9% a year over 5 years, about £10,379 a month, with about £122,751 of interest over the term before fees. Loans of this size are often secured on property or assets, or arranged as a secured business loan over a longer term, which lowers the monthly payment. The table above shows the figures from £30,000 to £1 million.
Can I use this loan calculator for a personal loan?
The maths is the same for any fixed rate loan repaid in equal monthly instalments, so it gives a fair estimate. Personal loans are usually advertised with an APR, which includes interest and certain compulsory fees, so the repayment from an APR here is an approximation. This calculator is designed for business borrowing.
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