Business Loan Calculator: Repayments and Total Cost
Estimate repayments on a business loan and see what it really costs once interest and fees are added. Change the rate, term or repayment frequency to compare offers on the same basis.
An example is loaded. Replace it with your figures. All amounts are AUD.
- Monthly repayment
- $1,660.72
- Number of repayments
- 36
- Total interest
- $9,785.76
- Total cost of borrowing (interest + fees)
- $10,285.76
- Total you repay, including fees
- $60,285.76
Repayment = P × r ÷ (1 − (1 + r)^−n), where P is $50,000.00, r is 12% ÷ 12 per period and n is 36 repayments. Fees are added on top: $500.00 upfront plus $0.00 a month.
An estimate for a standard amortising loan with a fixed rate. Lenders that quote a factor rate, charge interest daily or take repayments from sales work differently: compare the total cost, not just the rate. Not a loan offer or credit advice.
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How business loan repayments are calculated
Most term loans use the standard amortisation formula: repayment = P × r ÷ (1 − (1 + r)^−n). P is the amount borrowed, r is the annual rate divided by the number of repayments a year, and n is the total number of repayments. Each repayment covers that period's interest first, then reduces the balance.
In the starting example, $50,000 at 12% a year over three years with monthly repayments gives 36 repayments of $1,660.72. You repay $59,785.76, so interest is $9,785.76. Adding the $500 upfront fee takes the total cost of borrowing to $10,285.76.
Compare the total cost, not just the rate
Two loans with the same rate can cost different amounts once fees and term are included. A longer term lowers each repayment but raises total interest: the same $50,000 at 12% over five years costs about $16,733 in interest instead of $9,786.
Weekly repayments on the same loan are $382.02 and total $59,595.89, slightly less interest because the balance falls sooner. Some online lenders take daily or weekly repayments from your account, which matters for cash flow even when the total is similar.
When this calculator doesn't fit
Lenders that quote a factor rate (for example, repay 1.25 times the amount borrowed) or take a share of daily sales don't use this formula. Convert their total repayment into an annual rate before comparing; our unsecured business loans guide shows how.
Business-purpose loans generally aren't covered by the National Credit Code, so comparison rates aren't required. Ask every lender for the total amount you will repay, all fees and any early repayment costs in writing.
Common questions
What are the repayments on a $100,000 business loan?
At 10% a year over five years with monthly repayments, the repayment is $2,124.70 and total interest is $27,482.27, before fees. Change the rate and term in the calculator to match your offer.
Does paying weekly save interest?
Slightly, because the balance falls sooner. On $50,000 at 12% over three years, weekly repayments total $59,595.89 against $59,785.76 monthly. Check that the lender doesn't charge more for frequent repayments.
Is this a quote?
No. It's an estimate for a fixed-rate amortising loan. The lender's offer, its fees and how it calculates interest decide what you actually pay.
Put the result to work
- Business loans guide: every type compared
- Unsecured business loans and factor rates
- Overdraft or line of credit?
Sources and assumptions
Formula notes checked 5 September 2026. Examples are illustrative; these tools provide general information.