How to use the business loan calculator
- Enter the loan amount, the annual interest rate and the term in months.
- Choose the repayment frequency: monthly, fortnightly, weekly or daily on business days.
- Enter origination and other upfront fees and whether they are deducted, added to the loan or paid in cash.
- Review the payment per period, total interest, cost of borrowing and estimated APR, then download the schedule.
Worked example
$50,000 at 12% for 24 months with a 2% fee deducted
Monthly repayments are $2,353.67 with $6,488.15 total interest. Because the $1,000 fee reduces the funds you receive to $49,000, the estimated APR is about 14.05%. Switching to weekly repayments gives 104 payments of $541.32 and slightly less interest ($6,297.17).
How it works
Periodic rate = annual rate ÷ payments per year (12, 26, 52 or 260). Payment = P × r / (1 − (1 + r)−n) with n = term in months × payments per year ÷ 12. The APR estimate solves for the periodic rate that makes the present value of all payments equal the funds received after upfront fees, then annualises it by multiplying by payments per year.
Assumptions
- Interest is charged per repayment period at the nominal rate ÷ periods per year.
- Rates, fees and terms are values from your own offer.
- Daily repayments assume 260 business days a year.
Frequently asked questions
Do weekly repayments save interest?
Slightly, because the balance falls sooner. The calculator shows the exact difference for your loan.
My lender quotes a factor rate. Can I use this?
A factor rate (for example 1.2) is a fixed multiple of the amount borrowed, not an annual interest rate. Convert it to a total repayment and compare using the APR, or ask the lender for the APR.
Why include fees in the APR?
Fees reduce the money you actually receive. Including them gives a fairer comparison between offers with different fee structures.
Limitations
- Does not model interest-only periods, balloon payments, seasonal repayment plans or factor-rate products directly.
- Tax deductibility of interest is not considered.