Business Loan Calculator

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.