TOOLS

Working Capital Loan ^Calculator

Running figures through a Working Capital Loan Calculator saves time and flags affordability. Many SMEs prefer handing the task to a platform or broker like Funding Agent to source rates and handle paperwork. This calculator helps estimate repayments and understand borrowing costs clearly. For more detail on loan types, see Working Capital Loans. You can also explore different business loan calculators to compare options.

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

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

How To Use The Working Capital Loan Calculator

Gather key figures

Have the desired loan amount, annual interest rate, repayment term in months, and any arrangement fee ready before opening the calculator. Understanding loan eligibility helps prepare these, see loan eligibility guide.

Enter data accurately

Type each figure into the relevant box, choose the repayment frequency (monthly or quarterly), then confirm whether interest is fixed or variable. Accurate inputs ensure reliable outputs; learn more about interest rates and terms.

Review instant outputs

The tool will show your periodic repayment, total interest charge, and total repayable amount. Note these for comparison with lender quotes. Compare results with other funding options at Financing Options.

^Benefits of Using the Working Capital Loan Calculator

A Working Capital Loan Calculator is a valuable tool for businesses as it helps them assess their short-term liquidity and cash flow needs. By calculating the necessary working capital, businesses can ensure they have sufficient funds for daily operations, manage expenses effectively, and make informed financial decisions for growth and sustainability.

By modelling repayments in advance you avoid guesswork, understand cash-flow impact, and can negotiate confidently with lenders. This calculator supports informed borrowing decisions and faster cash projections. For alternatives, check business loan calculators and learning about working capital loans.

Faster cash projections

Informed borrowing decisions

Clear repayment visibility

Apply for working capital now

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How Working Capital Loan is Calculated

Periodic repayment formula

Uses amortising payment equation.

Periodic repayment formula

Repayment = P × r ÷ (1 − (1 + r)^(−n)), where P is loan amount, r is periodic interest rate (annual rate ÷ periods per year), and n is total number of payments. This amortisation ensures loan is fully repaid over term. See the term amortisation defined.

Total interest cost

Sum of repayments minus principal.

Total interest cost

Total Interest = (Repayment × n) − P. The calculator multiplies each periodic repayment by total payments n, then subtracts the original loan amount P to show borrowing cost. Understanding this helps when comparing loans. More on APR.

Effective annual rate

Converts rate to yearly APR.

Effective annual rate

EAR = (1 + r)^(periods per year) − 1. The tool raises the periodic rate r to the number of periods in a year to find the compounded annual percentage rate for comparison. This helps judge competing offers more fairly.

Understanding Your Working Capital Loan Calculator Results

Compare repayment size

Check the periodic repayment against your projected surplus cash so that scheduled outflows never exceed working capital buffers. This helps maintain healthy cash flow under current liabilities considerations.

Test input changes

Shorter terms or higher amounts push repayments up; reduce loan size or extend term until the figure fits within normal cash-flow swings. Experimenting with figures aligns borrowing to business capacity.

Factor in extras

Results exclude late fees, variable-rate shifts, and early repayment charges; read lender terms before relying solely on calculator outputs. Awareness of such terms is critical; see loan terms and conditions.