UK business loan calculator
A £50,000.00 business loan over 36 months at 9.9% APR costs about £1,611.01 a month, £57,996.46 repaid in total, of which £7,996.46 is interest. Enter your own amount, APR and term below for the monthly repayment, total repayable and total interest on any UK amortising term loan. Fees are extra, so compare lenders on the total amount repayable. For a merchant cash advance, use the MCA factor calculator.
Numbers are illustrative. Actual offers depend on the lender\'s underwriting. Calculator does not factor in arrangement fees, broker fees or early-repayment penalties; ask the lender for the effective APR before signing.
The maths in plain English
A term loan is amortising: you make the same payment every month, and each payment covers the interest due that month plus a slice of capital. Early on, most of the payment is interest; by the end, most is capital.
The monthly payment is the amount borrowed, times the monthly interest rate, times (1 plus the monthly rate) to the power of the number of months, all divided by (1 plus the monthly rate) to the power of the number of months, minus 1. The monthly rate is the APR divided by 12. On the default above, £50,000.00 at 9.9% APR over 36 months: the monthly rate is 0.83%, the payment is £1,611.01, and over 36 payments you repay £57,996.46, so the interest is £7,996.46.
Worked examples across common amounts and terms
| Amount | APR | Term | Monthly repayment | Total repayable | Total interest |
|---|---|---|---|---|---|
| £25,000 | 8% | 36 months | £783 | £28,202 | £3,202 |
| £50,000 | 9.9% | 36 months | £1,611.01 | £57,996.46 | £7,996.46 |
| £100,000 | 11% | 60 months | £2,175 | £130,482 | £30,482 |
| £250,000 | 12% | 84 months | £4,413 | £370,726 | £120,726 |
Source: FundBiz business loan calculator worked examples
Amortising (reducing-balance) basis. Rounded. Excludes arrangement fees (commonly 1% to 5%), broker fees and any early-repayment charges. A longer term lowers the monthly payment but raises the total interest.
View as plain-text Markdown
### Monthly repayment, total repayable and total interest on a UK amortising business term loan. Interest only; fees are extra. | Amount | APR | Term | Monthly repayment | Total repayable | Total interest | | --- | --- | --- | --- | --- | --- | | £25,000 | 8% | 36 months | £783 | £28,202 | £3,202 | | £50,000 | 9.9% | 36 months | £1,611.01 | £57,996.46 | £7,996.46 | | £100,000 | 11% | 60 months | £2,175 | £130,482 | £30,482 | | £250,000 | 12% | 84 months | £4,413 | £370,726 | £120,726 | Source: FundBiz business loan calculator worked examples Amortising (reducing-balance) basis. Rounded. Excludes arrangement fees (commonly 1% to 5%), broker fees and any early-repayment charges. A longer term lowers the monthly payment but raises the total interest.
“Two loans at the same APR can cost very different amounts once you add fees and read the early-settlement clause. A 4% arrangement fee on a £100,000 loan is £4,000 before you have paid a penny of interest, and a flat-rate quote dressed up to look like an APR can hide a third again in cost. Always ask for the total amount repayable including every fee, and the early-repayment charge, then compare loans on that single number. On affordability, run the monthly payment against your debt-service cover, not just your bank balance, because lenders decline on cover, not intent.”
Before you compare quotes
Convert everything to APR. A flat rate charges interest on the whole original balance for the whole term. A 6% flat rate over 5 years is close to 11% APR. Never compare a flat rate against an APR.
Add the fees in. Arrangement fees of 1% to 5%, and sometimes a broker fee, sit on top of the interest this calculator shows. Compare on total amount repayable.
Check the early-repayment charge. If you may repay early, the ERC clause can matter more than the rate.
Weighing a term loan against other structures? For kit or vehicles, asset finance is usually cheaper because the asset is the security; for a property purchase, a commercial mortgage fits better; to check the payment is serviceable, run the affordability ratio; and read the unsecured business loans overview for how lenders size a facility.
FAQs
How is a business loan repayment calculated?
A term business loan uses the standard amortising formula. The monthly payment is P x i x (1 + i) to the power n, divided by (1 + i) to the power n minus 1, where P is the amount borrowed, i is the monthly interest rate (APR divided by 12) and n is the number of monthly payments. Each payment is the same; early payments are mostly interest, later payments mostly capital.
What is the difference between APR and a flat rate?
APR charges interest on the reducing balance, so as you pay capital down you pay less interest. A flat rate charges interest on the whole original amount for the whole term, so the same headline number costs far more. A 6% flat rate over 5 years is close to 11% APR. Always convert to APR before comparing loans.
Does this calculator include fees?
No. It shows interest only, on the amount you borrow. Arrangement fees (commonly 1% to 5%), broker fees and any early-repayment charges sit on top and raise the true cost. Ask every lender for the total amount repayable including all fees, then compare on that figure rather than on the headline rate.
Can I repay a business loan early?
Usually yes, but check for an early-repayment charge. Some UK lenders let you settle early and only pay interest accrued to the settlement date; others charge a percentage of the outstanding balance or a set number of months of interest. On a longer term the early-settlement saving can be large, so the ERC clause matters as much as the rate.
Is a longer term cheaper?
A longer term lowers the monthly payment but raises the total interest, because you borrow the money for longer. A shorter term costs less overall but demands more cash each month. Use the calculator to find the term where the monthly payment is comfortably affordable without stretching the total cost more than you need to.
Get matched to business loan lenders
Tell us the amount, the term and what the money is for. We surface the panel lenders most likely to write the deal, with indicative rate bands you can drop straight back into this calculator. A human adviser reviews every match, including routes for adverse credit and post-decline.
Open the business loan eligibility checker →All FundBiz calculators
Tools for specific finance decisions. All free, all UK-specific.
- Commercial mortgage calculator Monthly payment on repayment or interest-only, with LTV and rental-cover notes.
- Affordability ratio DSCR-style check: does your cashflow comfortably cover the monthly repayment?
- Asset finance cost compare HP vs lease vs outright buy on the same asset. Total cost over the term.
- Working capital cycle Days sales outstanding plus inventory minus payable. Reveals short-term finance need.
- MCA APR converter Convert merchant cash advance factor rate to effective APR for term loan comparison.
- Revenue-based finance cost Turn an ecommerce flat fee and revenue share into an effective annualised cost and payback period.
- R&D advance estimator Estimate funds released against your next HMRC R&D tax-credit claim.
- Eligibility self-score 3-minute self-score against typical UK lender criteria. Surfaces likely declines.
- Bridging total cost Gross vs net, retained vs rolled vs serviced interest, true cost over actual days held.
- S455 director's loan bridge Overdrawn DLA: the 33.75% S455 charge vs a short-term bridge to clear it in time.
- DSCR calculator Debt-service coverage ratio: normalised EBITDA over total annual debt service, with a stress test.
- Blended cost of capital Weight a term loan, MCA and asset finance by principal into one blended APR. Flags the refinance.
- BBLS PAYG vs refinance Keep a Bounce Back Loan at 2.5% or refinance: differential cost vs strategic value break-even.
Confused by a term? Check the FundBiz glossary.