Understand the cost of your business loan
Business loan repayment calculator
Indicative figures only. Your actual rate and repayments will depend on the lender and your circumstances.
Calculations are indicative only and intended as a guide only. The figures calculated are not a statement of the actual repayments that will be charged on any actual loan and do not constitute a loan offer.
Minimum monthly repayment
- Amount borrowed
- £0
- Total interest
- £0
- Total repayment
- £0
Including interest of £0 + £0 fees
Indicative figures only. This is not a quote or offer of credit.
This calculator gives an idea of monthly cost and total interest for different loan terms. It is an example only - the rate you are offered depends on your business, the amount borrowed, lender checks and the terms of the loan.
How this calculator works
Our loan calculator gives you a quick estimate of what a business loan could cost each month. Enter how much you'd like to borrow, choose how long you'd like to repay it over, and add an interest rate. The rate starts at 9%, the average across the lenders on the panel, and you can change it to see how different rates affect your repayments.
It calculates your monthly repayment as if you pay back the same amount every month until you clear the loan. Each repayment covers some of the interest and some of the amount you borrowed. As you pay off the loan, the lender charges interest on a smaller balance, so more of each payment goes towards what you borrowed.
You'll see three figures:
Minimum monthly repayment - what you'd pay each month (excluding lender fees)
Total interest - the extra you'd pay on top of what you borrowed
Total repayment - everything you'd pay back over the full term, which is the amount borrowed plus the interest (excluding lender fees)
Choosing a longer term (the length of time you take to repay the loan) lowers your monthly repayment, but you’ll usually pay more interest overall. A shorter term generally does the opposite.
Please note: this isn't a quote or an offer of credit; these figures are estimates, so please use them as a guide. The rate a lender offers you may differ from 9%, and lenders may charge extra costs such as fees, which the calculator doesn't include. Always confirm your actual repayments with the lender and compare business loans to see what lenders could offer you.
Learn more about business loans
Business loans repayment calculator FAQs
Enter the amount, term length and interest rate to estimate your monthly repayment and total interest. It’s a guide, not a quote, as actual repayments depend on the lender and your business.
No. It just uses the interest rate you enter, so any arrangement fees, early repayment charges and other costs aren’t included. Ask your lender for a full breakdown of those charges.
The interest rate is the cost of borrowing the money, shown as a percentage of the amount you borrow. The APR (annual percentage rate) includes the interest plus certain mandatory fees, spread over a year.
The APR is usually higher than the headline interest rate, and it gives a fuller picture of total cost when comparing loans. This calculator uses the interest rate only, so don’t enter an APR, as it will overstate your repayments.
How much your business can borrow depends on factors including your business credit history, turnover, profit, existing debts and how long you’ve been trading.
Smaller businesses can often borrow up to around £500,000, while larger businesses with higher turnover may be able to borrow £1 million or more. This varies by lender and your eligibility.
Lenders will also check what’s affordable using the Debt Service Coverage Ratio (DSCR). Many like to see monthly profit before debt payments of at least 1.25 times your total monthly debt payments, though requirements vary. Use the calculator to test amounts and terms against what you can comfortably repay.
Use a specific amount. Base the loan amount on how much you need to borrow, not a generic round number.
Test different scenarios. Change the amount, term and interest rate to see how each affects your repayments. A longer term lowers the monthly repayment but usually costs more in interest overall.
Try a higher rate. Check you could still manage if the rate you’re offered is higher than you expected.
Check the repayment against your cash flow. Make sure it would still be comfortable in quieter months alongside your other outgoings.
Remember what’s left out. The calculator shows interest and repayments only, so allow extra for any lender fees.