A business loan calculator shows what a loan repaid in equal monthly instalments would cost. For example, £50,000 over 5 years at 6.63% works out at about £981 a month and £8,886 of interest. Real offers depend on the lender, your business and any fees, and are subject to status.
Work out your repayments
An illustration, not a quote. Lenders set their own rates, fees and terms, and any offer is subject to status and lender criteria.
Check your funding options| Year | Paid in the year | Of which interest | Balance at year end |
|---|---|---|---|
| 1 | £11,772 | £3,052 | £41,280 |
| 2 | £11,772 | £2,457 | £31,965 |
| 3 | £11,772 | £1,821 | £22,014 |
| 4 | £11,772 | £1,141 | £11,383 |
| 5 | £11,798 | £415 | £0 |
How does the business loan calculator work?
The calculator assumes a standard term loan: you borrow a lump sum and repay it in equal monthly instalments that cover the interest and part of the loan, so the balance is cleared by the end of the term. This is how most term loans from banks and online lenders are structured. It shows the monthly repayment, the total you would repay, the total interest and the balance left at the end of each year.
Enter the amount, the term in years or months and an annual interest rate. If the lender charges an arrangement fee, add it to see the full cost of borrowing. The calculator does not take your credit record or your business's figures into account, so treat the result as a guide to plan with, not an offer.
How are business loan repayments calculated?
A level monthly repayment comes from the standard annuity formula. With a loan amount P, a monthly interest rate r (the annual rate divided by 12) and n monthly payments, the repayment is P × r ÷ (1 − (1 + r)−n). Early payments are mostly interest; later ones mostly repay the loan, because interest is charged on a balance that keeps falling.
| Year | Paid in the year | Of which interest | Balance at year end |
|---|---|---|---|
| 1 | £11,772 | £3,052 | £41,280 |
| 2 | £11,772 | £2,457 | £31,965 |
| 3 | £11,772 | £1,821 | £22,014 |
| 4 | £11,772 | £1,141 | £11,383 |
| 5 | £11,798 | £415 | £0 |
In total you would repay £58,886, of which £8,886 is interest. Repayments in this calculator are rounded to the nearest pound, and the last one clears the balance exactly.
How do the term and the rate change what you pay?
A longer term lowers the monthly repayment but raises the total interest, because you borrow the money for longer. A higher rate raises both. The tables below use the same calculator; the rates are examples, not what any lender will offer you.
| Term | Monthly repayment | Total interest |
|---|---|---|
| 2 years | £2,284 | £4,820 |
| 3 years | £1,590 | £7,238 |
| 5 years | £1,038 | £12,276 |
| 7 years | £804 | £17,590 |
| Annual rate | Monthly repayment | Total interest |
|---|---|---|
| 6.63% | £981 | £8,886 |
| 10% | £1,062 | £13,745 |
| 15% | £1,189 | £21,381 |
What sets your rate is mostly how the lender sees the risk: trading history, turnover, credit record, security and the loan's size and term. Our guide to business loan interest rates explains what moves the price, and the Bank of England base rate page tracks the rate that variable loans follow.
Is the interest rate the same as the APR?
No. The calculator uses an annual interest rate, charged monthly. An APR (annual percentage rate) also builds in fees and the timing of every payment, using the formula in the FCA's Consumer Credit sourcebook (CONC App 1.2), so a loan with an arrangement fee has an APR above its interest rate.
Lenders must quote an APR for regulated credit, such as most lending to sole traders and small partnerships up to £25,000. Many loans to limited companies are not regulated, so you may see a monthly rate, a flat rate or a total amount repayable instead. Comparing the total repayable in pounds, fees included, is the most reliable way to compare offers.
An arrangement fee entered above is added to the cost of borrowing. If a lender deducts the fee from the loan instead, you receive less money but repay the full amount, which makes the loan dearer than the figures here suggest.
Which loans does the calculator not cover?
Some business finance is not repaid in equal monthly instalments, so this calculator will not show its true cost:
- Merchant cash advances are repaid as a share of card takings for a fixed fee. See our guide to merchant cash advances.
- Revolving credit and overdrafts charge interest only on what you draw. See revolving credit facilities.
- Bridging loans often roll the interest up to be repaid at the end. Use the bridging loan calculator.
- Asset finance can include a deposit or a balloon payment at the end. Use the asset finance calculator.
How do you get real figures for your business?
The rate and amount a lender offers depend on your business, so the quickest way to real numbers is to ask lenders that fit. Capzy is a credit broker, not a lender, and is paid by the lender. You can check your funding options with a soft search that does not affect your credit score; a lender's full application may use a hard search, and any offer is subject to status and lender criteria.
Before you apply, it helps to know what lenders ask for and how to compare business loan offers. For unsecured borrowing, our guide to unsecured business loans covers typical terms and guarantees.
Sources
- Money and Credit - August 2026 (effective interest rates on new loans to SMEs), Bank of England
- CONC App 1.2: Total charge for credit rules for other agreements, Financial Conduct Authority
- The Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, article 60C, legislation.gov.uk
Capzy is a credit broker, not a lender. We get paid by the lender. This page is general information, not financial, tax or legal advice. Finance is subject to status, lender criteria and affordability; rates and terms depend on your circumstances.