TOOLS

^Unsecured Business Loan Calculator

The Unsecured Business Loan Calculator estimates repayments on loans without collateral, helping business owners plan finances. It suits small and medium-sized enterprises seeking clarity on repayment amounts and costs. Funding Agent offers resources and tools, including unsecured business loans and a general business loan calculator, for informed decision-making.

Secure up to £500,000 in Business Finance with Funding Agent.

‍

Quick and easy application process
Loan disbursed within 24 hours
No additional charges for early repayment

How To Use The Unsecured Business Loan Calculator

Enter loan details

Input the loan amount required, select the repayment term in months or years, and enter the annual interest rate as quoted by your lender or shown on comparison sites. Accurate inputs ensure relevant results.

Add any fees

Include known arrangement or completion fees to factor these costs into either the total amount financed or spread them across repayments. This helps reflect the full cost of borrowing.

Generate results

Click calculate to view monthly repayments, total repayable, and total interest costs. Save or download these figures to assist in comparing offers from different lenders.

^Benefits of Using the Unsecured Business Loan Calculator

Securing an unsecured business loan can be a helpful way to manage working capital without needing to put up collateral. Here are some of the pros of unsecured loans:

Testing scenarios before application reveals how varying loan amounts and terms affect affordability and cashflow. It supports better negotiation for interest rates and helps avoid financial strain. See more on business loans to understand your options.

Quicker cashflow insight

Repayment planning clarity

Interest cost visibility

Apply for an unsecured loan now

Generate offers

How Unsecured Business Loan Repayments are Calculated

Monthly Repayment Formula

Uses standard amortising loan equation.

Monthly Repayment Formula

The monthly repayment is calculated using the amortising loan formula: Repayment = P × r / (1 − (1 + r)^(−n)), where P is the principal loan amount, r is the monthly interest rate (annual rate divided by 12), and n is the total number of months. This produces fixed monthly payments that cover both interest and principal.

Total Interest Formula

Total interest is all repayments minus principal.

Total Interest Formula

Total interest is calculated as the sum of all monthly repayments minus the original principal: Total Interest = (Repayment × n) − P. After finding the monthly repayment, multiply it by the number of payments (n) then subtract the loan amount (P) to find the total interest paid over the loan term.

APR Including Fees

APR adjusts interest to include fees.

APR Including Fees

The APR reflects the true annual cost including mandatory fees. It is found by determining the discount rate that equates the loan proceeds (principal minus fees) with the present value of repayments, calculated as the sum of each repayment divided by (1 + i) raised to the payment period t. This iterative calculation provides a comparable annual rate for evaluating loan offers. Learn about APR.

Understanding Your Unsecured Business Loan Calculator Results

Compare monthly affordability

Evaluate if the monthly repayment fits comfortably within your free cashflow. A high repayment relative to cashflow may signal liquidity issues. Refer to advice on managing cashflow.

Test term impact

Longer loan terms reduce monthly payments but increase total interest costs; shorter terms raise monthly costs but lower interest. Unsecured loans commonly range from 12 to 60 months.

Watch added charges

Be aware that arrangement fees, early repayment penalties, or variable interest rates may affect the actual cost. Always review lender terms carefully before committing.