Business Loans Calculator

See my repayments



Loan Amount: $30,000

Establishment Fee: --

Total Interest Paid: --

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How to use our business loan calculator

Our business loan repayment calculator lets you view your weekly, fortnightly, or monthly repayments based on your loan amount, interest rate, and loan term. Additionally, you’ll see a breakdown of interest payable over the loan term.

To use our business loan calculator, you’ll need to enter some details about your loan, including:

  1. Loan amount: This is the amount of money you’ll be borrowing from your lender through the business loan. It’s also known as your loan principal.

  2. Interest rate: This is the fixed interest rate the lender will apply to your business loan. A fixed interest rate means your repayments remain the same (and won’t fluctuate) over the loan term.

  3. 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.

  4. Establishment fees: The upfront fees charged by the lender when establishing the loan. Keep in mind that a business loan may come with additional fees, including monthly account keeping fees.

Once you have filled in your business loan details, simply click ‘See My Repayments’ to view your estimated repayment amount. You can then select monthly, fortnightly, or weekly repayments to see what your repayments would be at various frequencies.

Business loan repayment examples

This example shows the monthly repayments for varying business loan amounts at different interest rates. The calculations are based on a five-year loan term and do not include additional fees charged by the lender.

Business loan amountMonthly repayments (7.50% p.a.) Monthly repayments (9.50% p.a.) Monthly repayments (11.50% p.a.)









































business loan calculator

How are my business loan repayments calculated?

Your business loan repayments are calculated based on your loan amount, interest rate and loan term. Your repayments cover both the interest on your loan, and the principal amount.

Initially, a bigger portion of your repayments will go towards repaying the interest amount. Over time, more of your repayments will go towards paying down the loan principal, as the interest costs reduce. This gradual decrease is known as amortisation. In the case of a business loan with a variable interest rate, your repayments will be adjusted accordingly as the interest rate fluctuates.

How is my business loan interest rate calculated?

The interest on a standard business loan is generally expressed as an annual rate. The ‘p.a.’ after the percentage symbol in an interest rate means ‘per annum’. Your commercial loan interest rate will be based on your business risk profile. Anything that reduces the risk to the lender will generally result in a lower interest rate for the borrower (you).

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:

  • Your credit rating: Lenders factor in both your business’ credit score and personal credit score. Lenders will look at your past credit history, including any missed payments, defaults or insolvencies. Borrowers applying for a bad credit business loan generally pay more for their finance.

  • Your business trading history: Established businesses with a proven track record will generally qualify for more favourable interest rates than newer businesses and startups.

  • Your industry: Lenders usually consider the industry the business operates in, its unique risk factors (e.g. seasonality, sector regulations), and what market conditions are like overall.

  • Loan security: Loans that are secured by an asset (e.g. business car loans) tend to have lower rates than unsecured business loans (not backed by any collateral).

  • Your loan term: Short-term business loans tend to come with higher rates compared to longer-term loans. That’s because the lender has a shorter time frame to profit from your borrowing, leading to slightly higher interest rates. However, you’ll pay more interest overall with a longer-term loan.

  • The documentation you can provide: Businesses who can provide full financial documentation (i.e. bank statements and tax returns) to support their application typically receive lower interest rates than applicants seeking low doc business loans.

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Business loan calculator FAQs

The annual percentage rate (APR) is the total cost of a loan (including interest, fees, and other charges), expressed as an annual percentage. It gives you 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 you pay in interest each year without taking into account any fees or other charges.

A fixed rate remains the same for the entire loan term, whereas a variable interest rate may fluctuate depending on market conditions. With a fixed rate loan, your repayments will be fixed each month. This can make it easier to manage business cash flow. On the other hand, a variable rate loan can be riskier because the interest rate can fluctuate and result in higher or lower repayments over time.

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

Interest charges are usually calculated daily according to your current loan balance. Therefore, if you manage to reduce your loan balance more rapidly (for example, by making weekly repayments instead of monthly), you'll end up paying less interest over time, potentially lowering your overall borrowing costs.

Business loan terms generally range from 1-7 years. Your repayment term will depend on:

  • How much you borrow (e.g. you may need a longer loan term to pay off a larger loan while keeping monthly repayments manageable)
  • What you intend to use the funds for (e.g. buy a vehicle or shore up working capital)
  • Whether the loan is secured or unsecured (e.g. unsecured business loans tend to have shorter loan terms)
  • Your lender’s terms and conditions.

Yes, you can generally pay off your business loan early, although there may be early payout fees involved. Break costs may be calculated on the remaining unpaid interest, according to Great Southern Bank. This compensates the lender for the interest they would have earned if you had continued making repayments for the entire loan term.

Ask your lender about early payout fees before you pay off your commercial loan ahead of schedule.

You may be able to claim the interest portion of your business loan repayments on tax, according to the ATO. You may also be able claim certain ‘capital expenses’, including the cost of depreciating assets like vehicles and equipment used in your business. Speak to your accountant about the tax implications of different business loan options.

Securing finance for your small business is one thing, but managing your loan repayments is another. Here are some tips to help you stay on top of your repayments:

Align your repayment schedule with your cash flow

Setting up your repayment frequency to align with your business cash flow cycles can help make your debt more manageable. For example, if your business operates mainly on 30-day payment terms, consider choosing monthly repayments instead of weekly.

Make extra repayments when you can

Consider making extra repayments to reduce your loan principal (and save on interest) when your business generates extra income. This could be during sale periods, or seasonal upticks in business.

Be transparent with your lender

Speak to your lender if you have any difficulties making regular repayments on your business loan. They may suggest restructuring your finance agreement to make your repayments more manageable or may have a financial hardship assistance program you can apply for. This could help minimise any impact on your credit rating.

Business loan guides and resources

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