Business loan repayment calculator
Work out what a business loan would actually cost before you commit. Enter the amount, rate, term and any arrangement fee to see the monthly repayment, the total interest, and the full cost over the life of the loan.
How it works
The monthly repayment is worked out with the standard amortising-loan formula: each month you pay the same fixed amount, part of which clears interest on the balance still owed and part of which reduces the balance itself. Early payments are mostly interest; later ones are mostly capital. The longer the term, the lower the monthly figure but the more interest you pay overall.
The annual rate is divided by twelve to give a monthly rate, then applied across the number of months in the term. An arrangement fee does not change the monthly repayment shown here; it is a one-off cost added on top, so it is included in the total cost rather than spread across the instalments.
How to use the result
Look at the monthly repayment against your typical monthly cashflow, not just the headline amount you are borrowing. A loan that looks affordable over five years can be a strain in a quiet month. Compare offers on the total cost including the fee rather than the rate alone, since a lower rate with a large arrangement fee can work out dearer than a higher rate with no fee.
This is an estimate for planning only. It is not financial advice and not an offer of credit. Actual repayments depend on the lender's terms and fees and on whether the interest rate is fixed or variable.
Frequently asked questions
- What interest rate should I enter, and where do I find it?
- Enter the lender's representative APR or annual rate as a percentage, for example 9.9. The calculator divides this by twelve to get a monthly rate and applies it across your term. Use the figure quoted in the loan offer or comparison, not a guess, since the monthly repayment and total interest depend directly on it.
- Why does the arrangement fee not change my monthly repayment?
- The fee is treated as a one-off cost rather than something spread across the instalments, so it does not alter the monthly figure shown. It is added on top in the 'Total cost incl. fee' line instead. That keeps the monthly repayment true to the loan itself while still showing the real all-in cost of the borrowing.
- Which result should I use to compare two loan offers?
- Compare offers on the total cost including the fee, not the headline rate. A lower rate with a large arrangement fee can work out dearer than a higher rate with no fee. Enter each offer's amount, rate, term and fee separately, then weigh the 'Total cost incl. fee' figures side by side rather than the rates alone.
- I want a lower monthly repayment. Should I just extend the term?
- A longer term lowers the monthly figure but increases the total interest you pay overall, so the loan costs more in the end. Try a longer term in the 'Term (months)' box and watch both the monthly repayment and the total interest move in opposite directions. Pick the shortest term your monthly cashflow can comfortably handle.
- Can I rely on these figures when applying for the loan?
- Treat them as a planning estimate, not financial advice or an offer of credit. Your actual repayments depend on the lender's terms and fees and on whether the rate is fixed or variable. If the rate can change, the monthly figure here only holds while the rate stays the same. Check the lender's own quote before committing.