Free finance tool
Business Loan Calculator UK — Monthly Repayments & Total Interest
Before taking on debt, you need to know exactly what it will cost and whether your cash flow can support the repayments. This calculator shows your monthly repayment, total interest paid over the loan term, and a year-by-year breakdown — so you can assess whether the borrowing makes financial sense for your business.
How to use: Enter the loan amount, interest rate and term in years. The calculator will show your monthly repayments and the total cost of the loan.
Understanding your results
The monthly repayment is calculated using standard amortisation — meaning each payment covers both interest and principal, with the interest portion decreasing over time. Total interest is the difference between what you repay and what you borrowed. A longer term reduces monthly payments but increases total interest significantly. Make sure the monthly repayment fits comfortably within your cash flow — including during your quietest months.
Frequently asked questions
Is business loan interest tax-deductible?
Yes. Interest on a loan taken for business purposes is a deductible expense, reducing your taxable profit. The capital repayment itself is not deductible — only the interest portion. This means the effective cost of borrowing is lower than the headline interest rate once you factor in the tax saving.
What interest rates are typical for UK business loans?
Rates vary widely depending on the lender, loan size, term and your credit history. High-street banks typically offer 5–10% for established businesses with good credit. Alternative lenders may charge 8–20%. Government-backed Start Up Loans offer a fixed rate of 6%. Always compare the APR (annual percentage rate) which includes fees, not just the headline rate.
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