Free calculator · 2026/27 rates
Business Loan Calculator
Borrowing for your limited company? Enter the loan amount, term and interest rate to see an indicative monthly repayment and the total cost over the life of the loan. This is an estimate to help you compare options, not a credit quote.
Ask an accountant about your figureBusiness Loan Calculator
Borrowing for your limited company? Enter the loan amount, term and interest rate to see an indicative monthly repayment and the total cost over the life of the loan. This is an estimate to help you compare options, not a credit quote.
The representative rate offered depends on your company's trading history, turnover and whether the loan is secured.
A one-off fee, typically 1% to 3% of the loan amount, added to your total cost.
Indicative estimate only, not a credit quote. Your actual rate, fees and total cost depend on the lender's assessment of your company.
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How a business loan is priced and repaid
Most limited-company business loans are repaid on a capital-and-interest (amortising) basis: a level monthly payment that gradually clears both the interest and the principal, so the loan is fully repaid by the end of the term. Some facilities are structured interest-only, where you pay just the interest each month and the full loan amount falls due as a single payment at the end of the term, which keeps monthly outgoings lower but means you need a plan to repay or refinance the principal.
The rate a lender offers reflects the risk they see in your company: trading history, turnover, existing debt, and whether the loan is secured against company assets or backed by a personal guarantee. Most alternative and bank lenders also charge a one-off arrangement fee, commonly 1% to 3% of the loan amount, which adds to the total cost even though it does not change the monthly repayment figure shown here.
This calculator gives an indicative annualised cost that blends the interest and the fee over the term, to help you compare two offers on a like-for-like basis. It is not a regulated APR, because APR calculations follow specific rules that vary by product and lender. Worked example: a company borrows £75,000 over 5 years at 9%, amortising, with a 1.5% arrangement fee. The monthly repayment is about £1,557, the interest over the term comes to roughly £18,400, and the £1,125 fee brings the total cost of the loan to around £19,500 on top of the £75,000 borrowed.
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FAQ
Frequently asked questions
No. This calculator gives an indicative estimate based on the amount, term and rate you enter. Your actual rate, fees and monthly repayment depend on the lender's assessment of your company's trading history, financial strength and security offered.
An amortising loan repays both interest and a portion of the capital every month, so the balance falls to zero by the end of the term. An interest-only loan only pays the interest each month, with the full principal due as one payment at the end, which lowers monthly outgoings but leaves a bullet repayment to plan for.
Advertised rates are usually the best rate available to the strongest applicants. Companies with a shorter trading history, lower turnover, or no security to offer typically pay a higher rate to reflect the lender's risk.
It depends on the lender. Some add the fee to the loan amount you borrow (which increases the monthly repayment slightly), others deduct it from the amount you receive, and some invoice it separately. This calculator shows the fee as an additional cost on top of the repayment figures so you can see its full impact.
Many unsecured business loans to smaller or newer limited companies require a director's personal guarantee, meaning you become personally liable if the company cannot repay. Larger, established companies or loans secured against company assets are more likely to avoid this.
Interest on a business loan used for business purposes is generally an allowable deduction against your company's profits for corporation tax, subject to the usual wholly-and-exclusively rules and any interest-restriction rules for larger borrowers. Check the specific treatment with your accountant.