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Business Loan Calculator
Free business loan calculator. Enter the loan amount, interest rate (APR), and term to instantly calculate your monthly repayment, total repayment, and total interest paid. Includes an amortisation breakdown. Works for any business loan or finance agreement.
Enter a loan amount and interest rate to calculate your monthly repayments.
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Frequently Asked Questions
How is a business loan monthly repayment calculated?
Monthly repayments are calculated using the standard amortisation formula: M = P x [r(1+r)^n] / [(1+r)^n - 1], where P is the loan amount, r is the monthly interest rate (annual rate divided by 12), and n is the number of monthly payments.
What is the difference between APR and interest rate?
The interest rate is the cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate plus any fees and charges, giving a true annual cost of the loan. Always compare loans using APR, not just the headline interest rate.
What is a typical interest rate for a UK business loan?
UK business loan rates typically range from 4% to 20% APR depending on the lender, loan size, term, and business creditworthiness. High street banks tend to offer lower rates for established businesses. Alternative lenders may charge higher rates for newer or higher-risk businesses.
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