FREE UK BUSINESS FINANCE CALCULATOR

Business Loan Repayment Calculator

Model monthly repayments, interest and fees before deciding how much your business can comfortably support.

Enter the loan figures

Choose the rate basis shown on your quote. Using the wrong basis can produce a misleading result.

How is the interest rate quoted?

Enter known documentation, broker or other charges.

Reviewed by Phil RigneyCommercial Finance Broker, TMS Finance
Last reviewed17 September 2026

How business loan repayments are calculated

The answer depends on how the lender quotes its rate. A reducing-balance rate applies interest to the capital still outstanding. A flat rate applies interest to the original amount throughout the term. The same percentage can therefore produce a very different total cost.

Check fees as well as the rate

Arrangement, documentation and broker fees can increase the total cost. A lower headline rate is not automatically the cheaper offer if the fees or repayment term are higher.

Use the calculation to test affordability

Compare the estimated repayment with the business’s normal monthly cash surplus. Allow room for seasonal changes, unexpected costs and existing commitments rather than relying on the strongest trading month.

How much might the business be able to borrow?

Lenders normally consider turnover, profitability, cash generation, time trading, existing debt and recent bank-account conduct. The calculator shows what a chosen loan may cost; it does not decide whether that amount is affordable or likely to be approved.

WORKED EXAMPLE

£50,000 over three years

This illustration uses a 12.9% annual reducing-balance rate, a 36-month term and a 2% arrangement fee. It demonstrates why the total cost matters as much as the headline rate.

Loan amount
£50,000
Estimated monthly repayment
£1,682
Estimated interest
£10,562
Arrangement fee
£1,000
Estimated total payable
£61,562

The business would need to support the monthly commitment with enough headroom for tax, existing finance and weaker trading months. Actual lender terms may differ.

COMMON QUESTIONS

Questions business owners ask before applying

How accurate is a business loan repayment calculator?

It is only as accurate as the figures entered. The result is useful for planning and comparing scenarios, but it is not a quotation. A lender may use a different rate basis, repayment profile or fee structure and will assess the business before confirming terms.

What is the difference between a flat rate and a reducing-balance rate?

A flat rate applies interest to the original loan amount throughout the term. A reducing-balance rate applies interest to the capital still outstanding. The same headline percentage can therefore produce very different repayments and total costs.

Does using this calculator affect my business credit score?

No. The calculator does not collect personal information, contact a credit reference agency or carry out a finance application. A lender may run searches later if you choose to apply.

How much can a UK business borrow?

There is no single turnover multiple that applies to every lender. The amount depends on turnover, profit or cash generation, trading history, existing commitments, credit conduct, the purpose of the funding and any security available.

What should I do if the estimated repayment is too high?

Test a lower amount or longer term, but also compare the increased total cost. Other funding structures may fit the cash-flow cycle better. TMS Finance can compare realistic routes rather than forcing the application into one product.