Illustrative business-loan calculator

This calculator models equal monthly payments on a fully amortising loan using the amount, term and nominal annual rate you enter. It assumes the rate stays fixed and every payment is made on time. Actual business finance may use different calculations and include fees, deposits, final payments, variable rates or non-monthly collections.

Calculate an illustration

What the result assumes

• The full amount entered is advanced at the beginning.
• There are 12 equal payments per year, made monthly in arrears.
• The entered annual interest rate stays fixed for the entire term.
• Interest is calculated monthly on the outstanding balance.
• No arrangement, broker, legal, valuation, late or early-settlement fees are included.
• There is no deposit, interest-only period, balloon or final purchase payment.

Why the total may differ from an offer

Business-loan agreements can use flat rates, effective rates, variable rates or collection structures that are not equal monthly repayments. Fees may be paid upfront, deducted from the advance or added to the balance. The amount your company receives can therefore differ from the amount on which charges are calculated.

Compare the result properly

1. Replace the example rate with the rate stated in the proposal.
2. Add every fee and confirm whether it is financed or paid separately.
3. Check the amount the company actually receives.
4. Compare payment dates with the company's cash-flow cycle.
5. Read security, personal-guarantee and early-settlement terms.
6. Stress-test the payment against a weaker trading month.

See the business-loan guide for the wider route and document checklist. The growth-finance guide explains how to test the payment inside a costed expansion plan.

Frequently asked questions