Business loan calculator
What would it really
cost each month?
Change the amount, the term and the rate. See the monthly commitment and the total cost together, then request quotes for the amount you need.
The monthly figure
and the total,
side by side.
Lenders lead with the monthly payment. The total tells you what the money actually costs. Keep both in view.
A longer term lowers the payment each month and raises the total interest. Try changing the term to see the trade-off.
The commercial mortgage calculator adds the property value, deposit and loan to value.
Behind the numbers
A clearer estimate.
A better question.
How the repayment is worked out
A fixed-rate business loan repaid in equal monthly instalments uses the standard repayment formula. Each payment covers that month’s interest, and the rest reduces the balance.
Monthly payment = P × r ÷ (1 − (1 + r)−n)
P is the amount borrowed, r is the annual interest rate divided by 12, and n is the number of monthly payments.
A worked example
Borrowing £25,000 over 3 years at 12% a year gives r = 1% and n = 36. The monthly payment is £830.36, so you would repay £29,893 in total, including £4,893 of interest.
Over 5 years at the same rate, the payment falls to £556.11 a month, but the interest rises to £8,367. A longer term eases the monthly commitment and increases the overall cost.
What this calculator assumes
The loan has a fixed annual interest rate divided into 12 monthly rates. Repayments are equal and monthly, and the balance is fully repaid at the end. A fee entered here is paid separately upfront.
The default rate is an illustration chosen for the calculator. It’s not a Business Loan Advice rate, a representative APR or an indication of eligibility.
What it doesn’t include
Variable rates, late charges, early repayment costs, interest-only periods, balloon payments, daily interest conventions and fees financed into the loan aren’t modelled. Rounding can produce a small difference from a lender’s schedule.
A flat monthly rate, a factor rate and an APR aren’t interchangeable. Ask the lender for a repayment schedule and the total cost in pounds before comparing.
How to compare offersLet’s clear a few things up
Questions about
the numbers.
Straight answers about how the calculation works and what it can and can’t tell you.
How do I calculate business loan repayments?
Divide the annual interest rate by 12 to get a monthly rate, then apply the standard repayment formula to the amount borrowed and the number of monthly payments. The calculator does this for you and shows the monthly payment, the total repayable and the interest together.
What interest rate should I enter?
If you have a quote or an offer, use its rate and check that it’s an annual rate on a reducing balance. If not, try a few rates to see how much the payment changes. The default 12% is an illustration, not our rate or a rate any lender has offered.
Is the interest rate the same as an APR?
Not necessarily. An APR includes certain fees and charges as well as interest, and a flat rate or a factor rate is calculated differently again. Ask each lender for the repayment schedule and the total cost in pounds so you can compare like for like.
Can I use it as a commercial loan calculator?
Yes, for any business or commercial loan with a fixed rate and equal monthly repayments. For buying premises, the commercial mortgage calculator adds the property price, your deposit and the loan to value.
How much can my business borrow?
The calculator doesn’t assess eligibility. Lenders usually look at trading history, turnover, profit, cash flow, existing borrowing and credit history, and some ask for security or a personal guarantee. Our guide to the types of business loans explains the main routes.
Will using the calculator affect my credit score?
No. It runs in your browser, asks for no personal details and doesn’t perform a credit search.
From working it out to moving forward
Your next step.
Loan options by email.
Tell us what you need and where to send your loan options. Request quotes to compare, with no obligation to go ahead.
You never pay us. If you go ahead with finance through an introduction, the lender or broker may pay us a commission. Business Loan Advice is not a lender or broker and doesn’t give regulated advice. We’ll confirm any introduction with you before sharing your details. A request is not an application or a guarantee of an offer.