Business Loan Calculator
Calculate your monthly repayment and total interest cost for a fixed-rate business loan using the standard amortisation formula.
How it's calculated
Monthly payment = P × (r(1+r)ⁿ) ÷ ((1+r)ⁿ − 1)
where P = principal, r = monthly rate, n = term in months.
Frequently Asked Questions
- What interest rates do UK business loans typically offer?
- Rates vary widely, typically from about 3% to over 20% APR on unsecured lending. Three things drive where you land: the lender, the size of the loan, and your business's creditworthiness. Secured loans generally price lower than unsecured because the lender has recourse to an asset. Always compare the total cost over the full term rather than the headline rate.
- Can I repay a business loan early?
- Most do allow it, but often not for free. Lenders commonly charge an early repayment fee of one to two months' interest. Check your agreement before overpaying — the penalty can wipe out the interest you were trying to save, particularly late in the term when the remaining interest is small.
- Is business loan interest tax deductible?
- Generally yes. Interest on a business loan is an allowable deduction against profits, for corporation tax or income tax depending on your structure. The condition is that the loan is used wholly for business purposes. If any part funds personal spending, that portion is not deductible, so keep business and personal borrowing separate.