Business Loan Calculator
See what a business loan actually costs: the repayment, total interest and a full schedule, 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 worked out?
The standard amortisation formula. It produces a level payment that covers interest on what's still owed, plus enough principal to clear the loan by the end of the term.
What does an interest-only period do?
You pay only interest for a while, so the balance doesn't move. Payments after that period jump, and you end up paying more interest overall.
What's a balloon payment?
A lump sum due at the end. It keeps monthly payments down because less principal gets repaid along the way, but you still have to find or refinance that final amount.
Is the rate shown an APR?
No. Fees are added to the total cost, but the rate here is just the nominal annual rate divided by payments per year. That's not the same calculation lenders use for a statutory APR.
Will a lender actually offer these terms?
Don't count on it. Business lending is priced on credit quality, security and sector, so the real offer can be quite different from this illustration.
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