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Business loan calculator
Work out the monthly repayment on a business loan, what you will repay in total, and how each payment splits between interest and capital.
Repayment schedule
How each payment splits between interest and the loan itself. Early payments are mostly interest; later ones mostly capital.
| Month | Payment | Interest | Capital | Balance |
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Illustrative only, not an offer. These figures are arithmetic on the numbers you enter. A lender sets your actual rate, fees and terms on application, and its own quote is the only figure that binds. Nothing you type into this calculator leaves your browser.
How the calculation works
This is a standard repayment loan: the same payment every month, covering that month’s interest and paying down part of the balance, so the balance reaches zero with the last payment. The monthly payment is P × r ÷ (1 − (1 + r)−n), where P is the amount borrowed, r the monthly rate and n the number of months. As a check, £10,000 at 10% a year over 36 months comes to £322.67 a month, £11,616.19 in total.
Annual rate or APR?
Most lender calculators divide the yearly rate by twelve, and that is the default here. A true APR is defined so that the monthly rate compounds up to the APR over a year, which makes the monthly rate slightly lower. Lenders’ own representative examples usually quote both: an APR and the “annual interest rate” behind it. If you are using a representative APR from an advert, choose the true APR setting. The APR also includes compulsory fees; if your quote has an arrangement fee, add it to the amount borrowed for a fuller picture.
Using the result
Compare offers on the total repayable, not the monthly payment: a longer term always lowers the monthly figure and raises the total. Then check the result against your cash-flow forecast in a slow month, not a good one. For published rates by lender, see the business loans comparison; for what each works out to in pounds, see how to compare business loans.
Frequently asked questions
Is this the repayment a lender will offer me?
No. It is arithmetic on the figures you enter. A lender sets your rate on application, and its quote, including any fees, is the only figure that binds.
Does the calculator include fees?
No, it calculates interest only. To include an arrangement fee that is added to the loan, add the fee to the loan amount.
Why does the true APR setting give a lower payment?
Because an APR compounds: a monthly rate of about 0.80% compounds to 10% over a year, whereas 10% divided by twelve is 0.83%. Lenders' representative examples work this way.
Is my information stored?
No. The calculator runs entirely in your browser; nothing is sent to us or anyone else.