Calculate your monthly business loan repayments, total interest paid, and total cost of borrowing. Compare loan terms and interest rates before signing.
Monthly payment = P × r / (1 − (1 + r)^−n)
where P = principal, r = monthly interest rate (annual rate ÷ 12 ÷ 100), n = number of monthly payments.
Worked example: 25,000 loan at 6.5% APR for 5 years (60 months). r = 6.5/12/100 = 0.005417. Payment = 25,000 × 0.005417 / (1 − 1.005417^−60) = 489/month. Total repaid = 489 × 60 = 29,340. Total interest = 4,340 (17.4% of principal).
APR (Annual Percentage Rate) includes the interest rate plus any mandatory fees. Always compare APR — not just headline rates — when comparing loan offers.
Shorten the loan term, make overpayments when cash allows, or negotiate a lower rate.
Yes — the underlying amortisation formula is the same for any fixed-rate instalment loan.