Business Loan Calculator

Principal & Interest (Amortising)
Business loan inputs
Monthly (default)
Principal & Interest
Total monthly repayment $0
Total cost of loan excluding fees
Of which interest
Annual Percentage Rate (APR) including fees
Annual Percentage Yield (APY) incuding fees
Repayment Schedule
Month Opening balance Principal Interest Total payment Closing balance
Input Definitions:
  • Loan Amount:
    This is the amount you are borrowing from the lender, also referred to as the principal amount. This figure is used as a basis for calculating the interest charges of your loan.
  • Compounding Frequency:
    Also referred to as compounding period or interval, this is the frequency at which interest charges are calculated on your loan. Most forms of business finance operate on a monthly compound frequency and hence this is set as a default for our business loan calculator.
  • Interest Rate:
    Input your interest rate on an Annual Percentage Rate (APR) basis. This is the most common way that finance providers quote interest charges. It is the annual interest rate which does not adjust for the compounding frequency or interval of the loan. If your lender quotes you a monthly interest rate simply multiply this rate by 12 to calculate your Annual Percentage Rate (APR).
  • Loan Term:
    This reflects the tenure of your loan, the period from which the funds are initially borrowed to when they are repaid in full. Given the shorter term nature of a lot of business finance, we measure this period on a monthly basis.
  • Payment Structure:
    The two major forms of payment structure for business loans are principal and interest (amortising) and interest only. The former reflects loans whereby the principal of outstanding balance is progressively repaid each month, while the later refers to loans whereby only interest is paid on a regular basis with the principal paid in full at expiry of the loan.
  • Upfront Fees:
    Use this field to see the interest rate equivalent impact of any upfront fees and charges to your loan. If you input these values on a dollar basis our calculator will adjust your interest rate by amortising these expenses over the life of your loan.
Repayment Definitions:
  • Annual Percentage Rate (APR) Including Fees:
    The Annual Percentage Rate (APR) of your loan is the annual rate of interest paid on your loan without taking into account any compounding frequency or interval (so no intra-year compounding is applied). Given this you can simply multiply a monthly APR rate by 12 to calculate the annual rate and visa-versa (for example a 1% monthly APR reflected annually = 1% x 12 monthly periods = 12%).

    Finance providers regularly quote their loans and finance products using APR equivalent rates so our calculators use this rate as the base interest rate. You just need to make sure the APR you use has been correctly converted to an annual rate.

    Including fees means the APR of your loan has been adjusted to reflect the impact of these fees in interest rate terms. Our calculators do this by amortising the fees over the life of the loan.
  • Annual Percentage Yield (APY) Incuding Fees:
    The Annual Percentage Yield (APY) of your loan is the annual interest rate which takes into account the compounding frequency or interval of your loan. The rule applies that the more frequently interest is compounded, the higher the APY will be, all else equal. By including the compounding effect of interest, the APY rate offers a more accurate reflection of the true cost of your loan. It is also a great way to compare interest rates that have different compounding periods, because it effectively normalises for these different compounding frequencies or intervals.

    To calculate an APY rate, you need to take the APR rate and adjust it for the number of applicable compound periods. The formula example below assumes an Annual Percentage Rate (APR) and monthly compounding:

    APY % = (1 + APR % Expressed Monthly)^12 - 1

    Using an APR of 12.00% and monthly compounding, the resulting APY will be calculated as follows. Firstly, convert the APR % to a monthly figure = 12% ÷ 12 = 1.00%. Next, input the values into the formula shown to derive the APY. APY % = (1 + 1.00%)^12 - 1 = 12.68%.

    Including fees means the APY calculation also reflects any of these fee expenses, which are expressed in interest rate units. This is achieved by amortising the fees over the full period of the loan.™ is a trading name of NHC Advisors Pty Ltd. Copyright © 2019 All rights reserved. ABN 81 126 755 468.