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.
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.
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Want real figures for your business?
A calculator can only use the numbers you give it. Tell us what the funding is for and we will search our panel of 300+ lenders for options suited to your case. No obligation, and free to enquire.