Business loan
Calculate the monthly repayment, total interest, and total repayment for a business loan.
Business loan
Calculate the monthly repayment, total interest, and total repayment for a business loan.
This calculator works out what your monthly repayment would be on a business loan, and how much of what you pay back ends up being interest rather than the amount you actually borrowed.
It can help you answer questions like:
- Can I actually afford the monthly repayment on this loan?
- How much extra am I really paying because of interest?
- Would a shorter or longer loan term work out better for me?
What you’ll need to enter:
- Loan amount — how much you’re borrowing. (Example: $50,000.)
- Annual interest rate — the yearly rate your lender quotes you (not the monthly rate — we work that out for you). (Example: 7.5%.)
- Loan term — how long you have to pay it back, in months. (Example: 36 months, i.e. 3 years.)
How it works
We spread the loan amount plus interest evenly across every monthly repayment, the same way a bank would calculate it, so each payment is the same amount from the first month to the last.
What the result tells you
With the example numbers, you’d repay about $1,555 a month, paying around $5,991 in interest over the life of the loan — a total repayment of about $55,991 for a $50,000 loan.
A few things worth checking before you sign for a loan:
- Compare the total repayment, not just the monthly figure. A longer term often means a smaller monthly payment but more interest overall. Example: stretching a loan from 36 to 60 months lowers the monthly cost but usually increases the total interest paid.
- Check for extra fees. Establishment fees, account-keeping fees, or early repayment penalties aren’t included here — ask your lender for the full picture.
- Make sure the repayment fits your cash flow. Use this alongside the Burn rate calculator to see if the monthly repayment is something your business can comfortably absorb.
- Shop around. Even a 1% difference in interest rate can add up to real money over a few years — it’s worth comparing more than one lender.
In short: knowing your real monthly repayment and total interest upfront helps you borrow with your eyes open, rather than being surprised later.
Figures and results from these calculators are a general guide only and are not financial or professional advice. Consider getting professional advice, such as from a bookkeeper or accountant, before making decisions based on these results.