Small business calculator

Business loan calculator

FLD is not a lender or a credit broker and does not arrange credit. This is general information, not advice to borrow. Any representative APR shown is an example, not a personal quote: the rate you are offered depends on your circumstances and may be higher.

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Estimate the monthly repayment on a fixed-rate business term loan, and see how arrangement fees and an early repayment fee could change the total cost. Use the figures from a lender’s quote.

Illustrative only, not financial advice. Results depend entirely on the figures you enter. Figures filled in below are labelled “Example figure” — they aren’t live rates, offers or recommendations.

Estimate a business loan

Loan details
Arrangement fees
Early repayment (optional)

Your illustrative results

Monthly repayment
–

The fixed amount you’d pay each month.

Total interest
–

Interest over the full term, excluding fees.

Arrangement fees
–

Fixed fee plus any percentage fee.

Total payable
–

Monthly repayments plus fees.

Total cost of borrowing
–

Total payable minus the amount borrowed (interest plus fees).

Balance to settle early
–

Balance left after the month you entered (only if you fill in early repayment).

Early repayment fee
–

Fee on that balance, from the percentage you entered.

Total if repaid early
–

Payments made, settlement balance, early repayment fee and arrangement fees.

How this business loan calculator works

It models a fixed-rate term loan repaid in equal monthly instalments, with arrangement fees paid at the start. Real business finance varies a lot: some lenders quote a flat fee instead of an interest rate, some add fees to the loan, and rates depend on the business and any security or personal guarantee.

Things to check on a real quote

  • Whether the rate is an APR, a monthly rate or a flat fee — they aren’t directly comparable.
  • All fees, whether they’re deducted from the loan or added to it, and any early repayment charges.
  • Whether a personal guarantee or security is needed — see business loans.
  • How repayments fit your cash flow — see business expenses and cash flow.

The formulas we use

Monthly rate from APR: r = (1 + APR)^(1/12) − 1.

Monthly repayment: M = (P × r) ÷ (1 − (1 + r)^−n). If the rate is 0%: M = P ÷ n.

Fees: fixed fee + P × fee %. Total payable: (M × n) + Fees.

Total interest: (M × n) − P. Total cost of borrowing: Total − P.

Early repayment after month k: balance B = P(1 + r)^k − M((1 + r)^k − 1) ÷ r; fee B × early fee %; total M × k + B + early fee + Fees.

FAQ

Why is “total cost of borrowing” different from interest?

Total cost of borrowing includes arrangement fees as well as interest, so it shows the full extra amount you’d pay on top of what you borrow.

Does this work for flat-fee loans?

Not directly. Some business lenders charge a fixed fee rather than interest. Add that fee in the fixed arrangement fee box and set the rate to 0% to see a rough total.

Is this a lender quote?

No. It’s an illustration from the figures you enter. Lenders set terms after assessing the business.

Does this calculator store my figures?

No. Everything is worked out in your browser and nothing is stored or sent anywhere.

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Written by Steven — Editor, The Finance Lowdown

Fact checked by Angela — Editorial Reviewer

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