Business Loan Calculator
Work out repayments and total interest on a business term loan.
About the Business Loan Calculator
Enter the loan amount, interest rate and term. The calculator gives the monthly repayment, the total interest and the full repayment schedule, which helps when planning cash flow.
A term loan gives a lump sum repaid in fixed instalments. Lenders look at revenue, time in business, credit and collateral. Fees and personal guarantees are common; compare total cost, not just the rate.
The formula
Payment = P × i ÷ (1 − (1 + i)⁻ⁿ)
- P
- amount borrowed
- i
- monthly rate: yearly rate ÷ 12
- n
- number of monthly payments
Worked example
100,000 at 9% over 5 years
- 60 payments of 2,075.84
- Total interest: 24,550
- Total repaid: 124,550
Things to keep in mind
- Arrangement fees, security and guarantee costs aren't included.
- Many business loans are variable-rate; this assumes a fixed rate.
Questions people ask
Is the interest tax-deductible?
Business loan interest is generally a deductible business expense; check local rules.
Term loan or line of credit?
Term loans suit one-off investments; lines of credit suit uneven cash flow.