Business loan calculator

How to use this calculator

Our business loan calculator helps you understand the cost of borrowing before you commit. Here's how to get the most out of it:

• Loan amount — enter the amount you want to borrow, from £1,000 to £500,000.
• Repayment term — choose how long you want to repay the loan, from 1 to 10 years.
• Interest rate (APR) — enter the annual percentage rate you've been quoted or expect to receive. Business loan rates typically range from 3% to 25%.

The calculator will instantly show your estimated monthly repayment, the total amount you'll repay, and the total interest you'll pay over the term of the loan.

Understanding your results

The calculator uses a standard amortisation formula to estimate your monthly repayments. Here's what each figure means:

• Estimated monthly repayment — the amount you'll pay each month, assuming equal monthly instalments.
• Total amount repaid — the total of all your repayments over the full term, including interest.
• Total interest paid — the difference between what you borrowed and what you repaid — the cost of borrowing.

What affects business loan rates?

The interest rate you're offered depends on several factors:

• Trading history — established businesses with a proven track record typically qualify for lower rates.
• Credit profile — a strong personal and/or business credit history signals lower risk to lenders.
• Loan type — secured loans generally offer lower rates than unsecured loans.
• Loan amount and term — larger loans or longer terms may carry different rates.
• Lender — rates vary between high-street banks, challenger banks, and specialist lenders.

Frequently asked questions