Business Loan Calculator Australia
Work out your business loan repayments, then compare principal and interest with interest-only, and see how lender fees or a different term change the real cost. Monthly, fortnightly and weekly repayments, in Australian dollars.
Estimate only. It assumes one rate for the whole term and doesn't include GST or tax. The effective rate is our own estimate of the yearly cost once fees are counted. Lenders often aren't required to show a comparison rate on business loans, so ask for every fee in writing. Check with your lender, broker or accountant.
Repayment schedule
| Year | Principal | Interest | Repaid | Balance |
|---|
Your business loan payoff timeline
How the balance falls, and how much principal and interest you have paid by the end of each year.
Principal paid:
Interest paid:
How this business loan calculator works
Enter how much you want to borrow, the interest rate and the term. The calculator then shows your repayment on a standard principal and interest business loan, and you can switch between monthly, fortnightly and weekly repayments to match your cash flow. If you're sizing up a loan for equipment, a vehicle, stock or working capital, those three inputs give you a quick answer. The extra boxes are for when you have real quotes in front of you.
Interest is charged on the balance each period, and whatever is left of your repayment reduces the loan. Early on, most of each repayment is interest. Later, most of it is principal. The schedule under the calculator shows this year by year or repayment by repayment, and the chart shows how the balance, principal paid and interest paid move over the term.
A quick example. You borrow $100,000 at 9% a year over five years. The repayment is about $2,076 a month. Over the 60 months you'd repay roughly $124,500, which means about $24,500 is interest. Take the loan out over three years instead and the repayment jumps, but the interest bill drops a lot. It's worth trying a few terms before you pick one.
Principal and interest vs interest-only
With principal and interest, every repayment chips away at the debt, so the loan is gone at the end of the term. With interest-only, you pay just the interest and the amount you borrowed stays exactly where it started. The repayment is lower, which helps cash flow, but you still owe the full amount when the interest-only period ends.
Same loan, interest-only. On the $100,000 example, interest-only repayments would be about $750 a month, compared with $2,076. Over five years you'd pay around $45,000 in interest, and you'd still owe the whole $100,000 at the end. That makes interest-only a better fit for short-term needs, or when you have a clear plan to repay or refinance. Select "Interest-only" in the calculator to test it yourself.
Fees that change the real cost
The advertised rate rarely tells the whole story. Business loans often carry an establishment fee, a monthly or annual account fee, and extra costs such as legal fees, valuations and security registration. Some lenders also charge an exit fee if you repay early. In the calculator you can add the establishment fee to the loan or pay it in cash, and enter the account fee and any other upfront costs.
Consumer loans come with a comparison rate that rolls the standard fees into one figure. Business loans generally fall outside those consumer credit rules, so lenders often aren't required to show one. That's why the calculator gives you an estimated effective rate for the exact loan you've entered. It's our own estimate, but it's a handy way to compare two offers that look similar on the headline rate. Always ask for every fee in writing.
Secured, unsecured and personal guarantees
A secured business loan is backed by an asset, such as the equipment being bought, a property or other business assets. Because the lender has something to fall back on, rates are usually lower. An unsecured loan has no specific asset behind it, so the rate is usually higher and the amounts smaller. Either way, many lenders ask directors or owners for a personal guarantee, which means you could be personally liable if the business can't repay. Read that clause carefully and get advice before you sign.
Choosing a loan term
A longer term gives you a smaller repayment, but you'll pay more interest overall. As a rough rule, try to match the loan to what it's paying for. A short-term cash flow gap doesn't need a seven-year loan, and a piece of equipment that lasts ten years can sensibly be financed over a longer period. Before settling on a repayment, check that your business can comfortably cover it in a slow month, not only a busy one.
GST, tax and costs outside the loan
This calculator works with the amounts you enter and doesn't add or remove GST. If you're buying equipment or a vehicle, check whether the price you're financing includes GST and whether you can claim it. Interest, fees and depreciation on business assets may also be tax deductible, but the rules depend on your structure and circumstances. Speak to your accountant before you decide. Don't forget insurance, registration, servicing and training costs, which sit outside the loan.
Bank, non-bank or online lender?
Banks tend to offer lower rates but ask for more paperwork and a longer approval time. Non-bank and online lenders are usually faster and more flexible on documentation, but the rate and fees can be higher. A broker can compare options across lenders for you. Whoever you choose, compare the total cost over the whole term, not just the repayment.
Frequently asked questions
How much is the repayment on a $100,000 business loan?
It depends on the rate and term. At 9% over five years, a $100,000 principal and interest loan costs about $2,076 a month. Use the calculator to try your own rate and add any fees.
What's the difference between principal and interest and interest-only?
Principal and interest repayments reduce the debt, so the loan is paid off by the end. Interest-only repayments cover just the interest, so you still owe the full amount when the interest-only period ends.
Is business loan interest tax deductible?
Interest and some fees on a loan used for business purposes may be deductible, but it depends on how the money is used and how your business is structured. Check with your accountant or the ATO.
Do business loans have a comparison rate?
Not always. Comparison rates are a requirement for consumer loans, and business loans generally fall outside those rules. Ask the lender for a full list of fees, and use the estimated effective rate in this calculator to compare offers.
Does this calculator include GST?
No. Enter the amount you're actually borrowing. If you're financing equipment or a vehicle, confirm with your accountant whether GST is included in the price and whether you can claim it.
How accurate are the results?
They're estimates based on a constant interest rate and the figures you enter. Lenders calculate repayments and fees in slightly different ways, so confirm the final numbers with your lender or broker.
This calculator provides general information only and isn't financial, credit, tax or legal advice. It doesn't consider your business's circumstances. Speak with a licensed finance broker, accountant or financial adviser before making a decision, and ask each lender for a full breakdown of fees and charges so you can compare offers properly.
Looking at other kinds of borrowing? Try our car loan calculator, mortgage calculator or personal loan calculator.