Business Loans Calculator

See my repayments



Loan Amount: $30,000

Establishment Fee: --

Total Interest Paid: --

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How to use the business loan calculator

The business loan calculator estimates the regular repayments and total costs for your business loan based on the loan amount, interest rate and loan term.

To use the business loan calculator, you’ll need to enter some details about your loan. These are explained below:

  • Loan amount — This is the amount of money you will be borrowing from a lender through the business loan.
  • Interest rate — This is fixed interest rate the lender will apply to your business loan. A fixed interest rate will allow you to accurately assess your estimated repayments for the full loan term.
  • Establishment fees — The upfront fees charged by the lender when establishing the loan.
  • Loan term — The length of your business loan. This is important as it will determine the regular repayment amount and how much interest you will pay overall.

Once you have filled in your business loan details, simply click ‘See My Repayments’ to view an estimated repayment amount. You can then select Monthly, Fortnightly, or Weekly repayments to see what your repayment amount will be at various frequencies.

Monthly business loan repayment examples

Business loan amountRepayments (5% interest)Repayments (7.5% interest)Repayments (10% interest)





































Business loan repayment examples are calculated using monthly repayments with a fixed interest rate on a 5-year term. They do not include any fees that may be charged by a lender in addition to interest.

business loan calculator

How are my business loan repayments calculated?

Your business loan repayments are calculated based on the loan amount, your interest rate and the loan duration. Generally your repayments will be calculated to cover both the principal (the amount borrowed) and the interest charged by the lender.

When calculating the regular repayments, the lender ensures that you pay back the same amount each week, fortnight or month (assuming you have a fixed interest rate) for the whole loan term, even though the balance of your loan is gradually decreasing. This gradual decrease is known as amortisation.

To do this, the repayments are set up so that a bigger portion goes towards paying off the interest on your business loan at the start of the term. Then as the loan balance decreases, you will be charged less in interest, meaning more of your repayments go towards paying down the loan principal.

Of course, if your business loan has a variable interest rate, your repayments will be recalculated if the lender changes your rate.

How is my business loan interest rate calculated?

Interest rates on business loans are tailored to each individual borrower. Generally the higher the risk a borrower represents, the higher their interest rate will be. Lenders calculate risk based on various factors relating to the borrower, their business and what the loan is being used to finance. These factors include:

  • Credit history: Lenders factor in both the business's credit history and your personal credit score. Borrowers needing a bad credit business loan generally pay higher interest rates.
  • Business history: The more established a business is, the more favourable interest rates it will generally be able to secure.
  • Industry: Lenders usually consider the industry the business operates in and what trading conditions are like overall.
  • Security: Loans that are secured by an asset tend to have lower rates than unsecured business loans.
  • Loan amount and term: Higher loan amounts and longer terms generally are riskier for lenders and attract higher interest rates.
  • Your application: If you are able to provide comprehensive financial information and business plans to support your application, you may be able to secure a lower interest rate than an applicant looking for a low doc business loan.
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Business loan calculator FAQ

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This will depend on the individual business, but broadly speaking, Reserve Bank of Australia business lending statistics show that small businesses pay higher interested than bigger businesses overall. This is likely down to the higher risk of lending to a small business (e.g. if it has only been operating for a short period of time.

A fixed interest rate remains the same throughout the life of the loan, while a variable interest rate may change over time based on market conditions. With a fixed rate loan, you’ll know exactly what your payments will be each month. This can make it easier to manage business cash flow. A variable rate loan, on the other hand, can be riskier because the interest rate can fluctuate and result in higher or lower payments over time.

How often you make repayments affects the cost of a business loan because it determines how quickly you pay down the loan balance and how much interest is charged. This is because lenders generally calculate interest charges daily based on the current balance. So saving a lower loan balance more often (e.g. by making payments weekly instead of monthly) means you will be charged less in interest.

Most lenders calculate interest daily, based on the current balance of the business loan that day. However, interest is usually charged (added to the loan balance) monthly, meaning the lender simply adds up the daily interest charges for each of the days in the month.

The annual percentage rate (APR) is the total cost of the loan, including the interest rate, fees, and other charges, expressed as a percentage of the loan amount. The APR is designed to give a more accurate representation of the true cost of borrowing than the interest rate alone. The interest rate is the percentage of the loan amount that the borrower pays in interest each year, without taking into account any fees or other charges.

Some lenders may charge prepayment penalties for paying off a business loan early. Prepayment penalties are fees charged to borrowers who pay off their loans before the end of the loan term. The purpose of early repayment penalties is to compensate lenders for the interest they would have earned if the borrower had continued to make payments for the full loan term. However, not all lenders charge these fees. Finding one that doesn’t can help you keep your business loan costs low.

Here are four ways to lower your business loans costs:

  • Borrow less: Could you contribute a deposit to reduce the loan amount? For example, could you trade-in an existing vehicle owned by the business in the case of a business car loan?
  • Reduce the loan term: This will mean a higher regular repayment, but you’ll pay less in interest overall.
  • Make extra repayments: Regardless of the contracted loan term, you may be able to make extra repayments to pay off the loan early and save on interest.
  • Compare lenders: The best way to save on interest is likely to be comparing multiple lenders based on the interest rate and fees charged. If you secure the lowest business loan rate you can, you can always take advantage of the other interest-saving techniques too.

Business Loan guides and resources

Learn more about your business finance options and how to get the funding you need to grow your business.


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