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.
Loan details you'll need to enter
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.
Interest rate
This is the business loan interest rate the lender will apply. A fixed interest rate means your repayments remain the same (and won’t fluctuate) over the loan term.
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.
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.
Why working out your repayments matters
Phil Collard, Money.com.au Asset Finance Expert
"All borrowers should ask themselves, what is my business comfortable paying per week, per fortnight, per month in terms of repayments? That then dictates most other decisions about your finance. There's no point in you doing a longer loan term to get lower regular payments than you can afford if you plan on paying it out in the first third of the loan period. It's just going to hurt you on the back end with extra interest or break costs."
Phil Collard, Money.com.au Asset Finance Expert
Business loan repayment examples
| Business loan amount | Monthly repayments (7.50% p.a.) | Monthly repayments (9.50% p.a.) | Monthly repayments (11.50% p.a.) |
|---|---|---|---|
$10,000 | $200.38 | $210.02 | $219.93 |
$20,000 | $400.76 | $420.04 | $439.85 |
$30,000 | $601.14 | $630.06 | $659.78 |
$40,000 | $801.52 | $840.07 | $879.70 |
$50,000 | $1,001.90 | $1,050.09 | $1,099.63 |
$60,000 | $1,202.28 | $1,260.11 | $1,319.56 |
$70,000 | $1,402.66 | $1,470.13 | $1,539.48 |
$80,000 | $1,603.04 | $1,680.15 | $1,759.41 |
$90,000 | $1,803.42 | $1,890.17 | $1,979.33 |
$100,000 | $2,003.79 | $2,100.19 | $2,199.26 |
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?
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 business and personal credit rating
- Your business trading history
- Your industry
- Loan security
- Your loan term
- The documentation you can provide
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’. But some lenders' apply interest on a per month basis, or lenders sometimes apply a factor rate meaning interest is calculated as a multiple of the loan amount.
Asset finance
Revolving credit
Specialised finance
