Business Loan Calculator
Work out repayments, total interest and the full repayment schedule for a business loan or commercial mortgage, including interest-only periods and balloon payments.
Formula and method
Payment = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P is the amount borrowed, r the rate per period and n the number of amortising periods. A balloon reduces the principal that must be repaid across the term.
During an interest-only period the payment is the interest on the outstanding balance and the balance does not fall.
Total cost adds any arrangement fee to the sum of all payments made.
Worked example
€100,000 at 6% over 10 years with monthly payments.
Rate per period = 0.06 ÷ 12 = 0.005 over 120 periods, giving a payment of about €1,110.21.
Total repaid is roughly €133,225, of which about €33,225 is interest.
FAQ
Frequently asked questions
How is the repayment calculated?
With the standard amortisation formula, which produces a level payment covering interest on the outstanding balance plus enough principal to clear the loan by the end of the term.
What is an interest-only period?
A period at the start when you pay only the interest. The balance does not fall, so payments after it are higher and total interest is greater.
What is a balloon payment?
A lump sum due at the end of the term. Monthly payments are lower because less principal is repaid during the term, but the residual must be refinanced or settled.
Is this an APR?
No. Arrangement fees are added to total cost but the interest rate is used as a nominal annual rate divided by the number of payments per year, which is not the same as a statutory APR.
Will a lender offer these terms?
Not necessarily. Business lending is priced on credit quality, security and sector, and the actual offer may differ substantially from this illustration.
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