Business loan repayments calculator

This calculator estimates repayments on a straightforward business loan, either principal & interest (where each repayment reduces the balance) or interest-only (where the balance stays the same and the amount borrowed is repaid separately, typically at the end of the term or on refinance). Enter the loan amount, the term, an interest rate to test, and which repayment type you want to model.

Principal & interest gives a lower total cost over the life of the loan since the balance reduces with every payment; interest-only gives a lower monthly repayment but leaves the full amount owing at the end, which needs its own repayment or exit strategy. Business loan pricing on our panel varies widely by security, term, credit position and purpose — banks, private lenders, non-bank lenders and specialist funds all price differently, and an unsecured facility will typically cost more than one backed by property. Business-purpose finance only; every figure here is indicative and subject to the lender's own assessment. Term and rate tend to move together in practice: a shorter term usually attracts a sharper rate but a higher repayment, while a longer term eases cash flow at a higher total cost. Running both repayment types against a few different terms before you enquire is the fastest way to see which structure actually suits the business, rather than assuming principal & interest is always the right default.