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Business Loan Calculator

How much will my business loan repayments be?

Business loan calculator

Use our custom Business Loan Calculator to calculate your monthly business loan repayments for a business loan in Australia. You can customise your business loan calculation by inputting the loan amount, interest rate and loan term (length) in years.

$
([loan-amount]*([interest-rate]/100)/12/(1-Math.pow(1+([interest-rate]/100)/12,-([loan-term]*12))))
$
/month

Disclaimer: Please be aware that any calculations produced by this calculator are meant for guidance purposes only. They are purely illustrative and depend on the details you input. The estimated repayments do not account for additional lender fees and charges.

How the business loan calculator works

To get started, you’ll need to input some details about the loan:

01
Loan Amount
Loan amount is the amount of money you borrow with interest calculated yearly off this amount.
02
Interest Rate
Lenders consider your credit history, amount to be borrowed, and loan term to determine your interest rate.
03
Loan Term
Loan term affects repayment length. Shorter terms mean higher repayments but less interest paid overall.

More on interest rates

When applying for a business loan, several factors influence the interest rate you’ll be offered. These include:

Credit Score

Credit score is a number that represents your creditworthiness. Lenders use it to assess the risk of lending to you. A higher score means lower interest rates and suggests you're more likely to repay the debt on time.

Loan-to-Value Ratio

The loan-to-value ratio (LVR) is the ratio of the loan amount to the value of an asset being purchased. A lower LVR means less risk for the lender since you're putting more of your own money into the purchase. This increases the likelihood of them being able to recover the outstanding balance of your loan if you default.

Loan Term

Loan term affects interest rate. Shorter terms have lower rates due to less risk for lender, while longer terms may have higher rates due to extended repayment period and increased risk.

Let's look at some borrowing scenarios

Scenario 1

$10,000 borrow at 8.4% annual interest rate
Borrowing $10,000 at an 8.4% annual interest rate would result in monthly payments of approximately $243.46 over a standard five-year term. It's crucial to factor in the total interest paid over the life of the loan, which amounts to approximately $4,607.60, making the total repayment $14,607.60.

Scenario 2

$10,000 borrow at 12% yearly interest rate
Borrowing $10,000 at a 12% annual interest rate would lead to higher monthly payments, approximately $277.78 over the same five-year term. With a higher interest rate, the total interest paid over the life of the loan would increase significantly, totaling approximately $6,666.80, resulting in a total repayment of $16,666.80.

Scenario 3

$50,000 borrow at 6.8% yearly interest rate
If the interest rate for borrowing $50,000 is 6.8% annually, the monthly payments over a standard five-year term would be around $986.02. Throughout the loan's duration, the total interest paid would amount to approximately $9,361.20, resulting in a total repayment of $59,361.20.

Weekly business loan repayments

See how your business loan repayments might change based on your eligible interest rate.

*These business loan repayment examples have been calculated using weekly repayments on a fixed rate over a 5 year loan term. These repayments do not include fees or charges that may be added by the lender on top of the interest.

Business loan calculator FAQs

See the answers to some of our most frequently asked questions regarding our business loan calculator.

What is a business loan calculator?

A business loan calculator estimates monthly payments and total interest of a loan. It helps business owners understand borrowing costs.

How does a business loan calculator work?

Loan calculators require input like loan amount, interest rate, and loan term. Based on this, they calculate monthly payments.

Why should I use a business loan calculator?

A business loan calculator helps you compare different loan options. But it's no substitute for expert advice. At Find a Loan, our finance experts can help you choose the best loan for your personalised needs.

What factors should I consider when using a business loan calculator?

When using a business loan calculator, consider the loan amount, interest rate, loan term, additional fees, and your business's cash flow to determine your monthly payments and total interest paid. Also, make sure to assess your ability to repay the loan comfortably.

Are business loan calculators accurate?

Loan calculators provide estimates based on your inputs. Keep in mind that they may not consider all variables, fees, or charges. Use them for initial assessment only and connect with a finance expert via Find a Loan for personalised information.

Can I use a business loan calculator for different types of loans?

Please keep the following information in mind: Business loan calculators are versatile and can be used for different types of loans. However, there are variables to consider. Use the calculator as a guide, and our finance experts at Find a Loan will provide support with tailored loan details.

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