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 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.
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.
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?
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.
