Calculator
Business Loan Calculator
A business loan will cost the amount borrowed plus interest and fees. The timing and total depend on the rate, term, repayment frequency, interest only period and any balloon, so enter your figures below to see each part.
Year by year loan balance
| Year | Opening balance | Interest paid | Principal paid | Closing balance |
|---|
Results use a standard amortisation formula with any balloon left owing at the end. The interest only period is converted to the nearest whole repayment period. Estimates only: actual calculations can differ because of fees, repayment timing, rate changes and facility terms.
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See the repayment and the full cost together
A lower repayment does not always mean a lower cost. An interest only period delays principal reduction, while a balloon leaves part of the principal outstanding until the end, so this calculator shows the repayment in each phase alongside total interest and the final amount due.
Use the result as an estimate, then compare the structure with your cash flow and purpose. Our commercial finance page explains common facility options, while the business finance check helps you prepare the information needed for a finance discussion.
Frequently asked questions
How is a business loan repayment calculated?
The repayment uses the loan amount, interest rate, remaining principal and interest term, repayment frequency and any balloon. A longer term or larger balloon lowers the periodic repayment, but usually increases total interest.
What does an interest only period change?
During the interest only period, each repayment covers interest and the loan balance does not fall. The principal and interest repayment is then calculated over the shorter remaining term, so it will be higher than if principal reduced from the start.
How does a balloon affect total cost?
A balloon lowers the principal and interest repayment by leaving part of the loan due at the end. Because that balance remains outstanding for the full term, a larger balloon usually increases total interest.
What costs does this calculator include?
It includes scheduled interest, principal repayments, the establishment fee you enter and any balloon due at the end. It does not include ongoing fees, late fees, valuation costs or changes in the interest rate.
Is the interest rate shown a quote?
No. The default rate is illustrative, not a quote. Replace it with the rate offered for your business and facility to make the estimate more relevant.
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