Business Loan Calculator UK
A quick business loan calculator lets you test repayments in minutes, yet many SMEs still prefer a platform or broker like Funding Agent to source live offers and handle paperwork. This tool is designed for business owners considering borrowing to understand potential costs. Using it can help forecast monthly repayments and plan cash flow. For more details on financing options, see business loans and how to qualify for a business loan.
- Quick and easy application process
- Loan disbursed within 24 hours
- No additional charges for early repayment
How To Use The Business loan calculator
Enter loan details
Input the amount to borrow, choose a repayment term in months or years, and type the annual interest rate quoted by the lender. Knowing your loan eligibility beforehand can be helpful, so check guidelines on business loan qualification.
Include any fees
Add arrangement or completion fees where shown so the calculator folds these into the total repayable figure instead of hiding them. Understanding the impact of fees is essential; see our explanation of interest rates and fees for business loans.
Compare the results
Click calculate to reveal monthly repayment, total repayable, and total interest. Adjust inputs until the monthly number fits projected cash flow. For ongoing finance management, review business loan options and terms.
Benefits of Using the Business loan calculator
A Business Loan Calculator is an essential tool for entrepreneurs seeking financial assistance for their ventures. It helps users estimate monthly payments, interest rates, and total repayment amounts based on various loan parameters. This calculator not only aids in effective financial planning but also empowers business owners to make informed decisions when applying for loans by providing a clear overview of their potential commitments.
Testing scenarios before approaching lenders crystallises affordability, highlights the cost impact of longer terms or fees, and strengthens your negotiation position. For further insights, see guides on business loans and loan qualification.
SCALE YOUR BUSINESS TO NEW HEIGHTS
Providers
How Business loan calculator is calculated
Monthly repayment
Uses amortising loan formula to show monthly cost.
Total repayable
Multiplies payment by total instalments.
Total interest
Deducts principal from total repayable.
Understanding Your Business loan calculator Results
Check affordability first
If the monthly repayment is above forecast free cash, consider reducing the loan amount or extending the term before applying. See business loans for more options.
Test rate sensitivity
Increase or decrease the interest rate by 0.5–1% to see how sensitive repayments are; most SME loans sit between 6% and 15% APR in the UK. Understanding interest rates helps in comparing offers.
Account for extras
Results assume timely payments and exclude early repayment charges or late fees. Read lender documents to spot these additional costs and see our interest rate explanations for more detail.
FAQ’S
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Extra bits you might find useful..
What to enter for the most accurate estimate
- Loan amount, the amount you want to borrow.
- Term, the number of months or years you want to repay over.
- APR, the annual percentage rate quoted by the lender.
- Fees, add arrangement or completion fees so total repayable is realistic.
APR vs interest rate vs fees, what to compare
APR is designed to help you compare the yearly cost of borrowing, and it can include interest plus certain fees. That said, you should still compare the total repayable and the monthly repayment, because fees and repayment structure can change what the borrowing feels like in practice.
Worked examples
Example A
£25,000 over 36 months at 12% APR is about £830.36 per month. Total repayments are about £29,892.88, which means about £4,892.88 of interest, before any fees. If there is a £500 arrangement fee, total cost becomes about £5,392.88.
Example B
£50,000 over 60 months at 10% APR is about £1,062.35 per month. Total repayments are about £63,741.13, which means about £13,741.13 of interest, before any fees.
How to use your results, a quick decision checklist
- Does the monthly repayment fit comfortably inside your forecast free cash flow?
- If you add a buffer, for example a higher rate or a slightly lower revenue month, does it still work?
- Do the total repayments make sense relative to the return you expect from using the funds?
What lenders typically ask for next
If you move from calculator to real offers, lenders commonly request up-to-date financial information. Depending on your circumstances, that can include recent financial statements, profit and loss figures, and supporting documents to evidence trading and affordability.
More Calculator FAQs
Why is my real offer different from the calculator?
Offers can change based on risk, lender fees, repayment frequency, and what the lender finds during underwriting checks.
Should I use APR or interest rate?
Use APR when comparing lenders, then also check total repayable and any fees so you understand the full cost.
Do fees matter much?
Yes. A lender with a slightly lower rate but higher fees can be more expensive overall, especially on shorter terms.
Is a longer term always better?
It reduces monthly payments but usually increases total interest. The best term is the one that keeps payments affordable without inflating total cost unnecessarily.