Business Loan Calculator
See what a business loan will really cost before you sign. Enter the amount, interest rate, term and any setup fee to get your regular repayment, the total interest, the total you’ll repay and a year-by-year amortisation schedule.
Calculate loan repayments
Loan repayment formula
Repayment (amortising loan)
Payment = P × r ÷ (1 − (1 + r)−n)P = loan amount, r = interest rate per period (annual rate ÷ payments per year), n = total number of payments. Each payment covers that period’s interest, and the rest reduces the balance, so the interest share falls over time.
Total cost
Total interest = payment × n − P · Total cost = payment × n + feesWorked example: 50,000 at 9% over 5 years, monthly
- r = 0.09 ÷ 12 = 0.0075; n = 60
- Payment = 50,000 × 0.0075 ÷ (1 − 1.0075−60) = 1,037.92 a month
- Total repaid = 62,275.07; total interest = 12,275.07
| Year | Interest paid | Principal repaid | Balance at year end |
|---|---|---|---|
| 1 | 4,163.51 | 8,291.50 | 41,708.50 |
| 2 | 3,385.71 | 9,069.30 | 32,639.20 |
| 3 | 2,534.95 | 9,920.06 | 22,719.13 |
| 4 | 1,604.38 | 10,850.63 | 11,868.50 |
| 5 | 586.51 | 11,868.50 | 0.00 |
Types of business finance
| Finance | Typical use | How repayment works |
|---|---|---|
| Term loan | Expansion, equipment, refurbishment | Fixed repayments over 1–10 years (this calculator) |
| Asset / equipment finance | Vehicles, machinery | Repayments secured on the asset |
| Overdraft or credit line | Short-term cash flow | Interest only on what you use |
| Invoice finance | Waiting for customers to pay | Advance against unpaid invoices |
| Merchant cash advance | Card-heavy businesses | Repaid from a share of card takings; often expensive |
Before you borrow
- Compare the total cost, not just the rate: fees and term length change it a lot.
- Check early repayment charges in case you want to clear the loan sooner.
- Stress-test your cash flow with the Cash Flow Calculator to make sure the repayment is affordable in quiet months.
Frequently asked questions
How do I calculate monthly loan payments?
Use the amortisation formula: payment = P × r ÷ (1 − (1 + r)^−n), with r the monthly rate and n the number of months.
Does a longer term save money?
It lowers each repayment but increases the total interest you pay. The same 50,000 at 9% over 10 years costs about 26,000 in interest instead of 12,300.
Is the quoted rate the same as APR?
Not always. APR includes fees, so it is usually higher than the nominal interest rate. Enter the setup fee here to see its effect on total cost.
Related calculators
Results are estimates for a fixed-rate amortising loan. Your lender’s offer and terms are final.