Business Loan Calculator
Use this free business loan calculator to work out repayments on a loan amount, or see how much your business could borrow within a repayment it can afford. Built by Rule 29, business accountants and advisers to SMEs across Hull and East Yorkshire — adjust the inputs and the numbers recalculate instantly.
Inputs
The amount you're looking to borrow.
What you could comfortably repay each period.
The lender's APR or equivalent rate.
A one-off lender fee, typically 2% or more of the loan.
Added to the balance you repay, so it's spread across your repayments.
How long you'll take to repay in full.
How often you make a repayment.
Repayment breakdown over time
How this business loan calculator works
This business loan calculator uses the same repayment method most UK lenders use: a fixed periodic repayment that covers both interest and a slice of the capital you've borrowed, so the balance reduces to zero by the end of the term. Switch between the two modes above depending on the question you're trying to answer.
"What would my repayments be?" takes a loan amount, rate, term and repayment frequency, and works out what you'd pay each month, quarter or year — along with the total interest and any setup fee.
"How much could I borrow?" works the other way round: tell it what you could comfortably afford to repay, and it calculates the maximum loan that repayment would support at your chosen rate and term.
What determines how much your business can borrow
Every lender assesses affordability slightly differently, but most UK business loan applications come down to a similar set of factors:
- Affordability and cash flow. Lenders want to see that your repayments comfortably fit within your business's income, not just that you can cover them in a good month.
- Trading history and turnover. Established businesses with two or more years of accounts typically access better rates than very new start-ups.
- Credit history. Both the business's credit file and the personal credit history of directors are usually checked.
- Security and personal guarantees. Secured loans (backed by business or personal assets) tend to carry lower rates than unsecured borrowing, which often still requires a personal guarantee.
- Sector and purpose. Some industries and uses of funds (working capital, equipment, growth) are viewed differently by different lenders.
- Existing debt. Other loans, overdrafts and credit lines are weighed against your income when a lender decides how much more you can service.
Use the "How much could I borrow?" mode above as a starting point, then talk to a lender or adviser about how your specific circumstances affect the amount and rate you're likely to be offered.
Types of business finance available in the UK
A "business loan" covers several different products, and the right one depends on what you're financing:
- Term loans — a lump sum repaid over a fixed period, the type this calculator models.
- Asset finance — spreads the cost of equipment or vehicles, often secured against the asset itself.
- Invoice finance — releases cash tied up in unpaid customer invoices.
- Merchant cash advances — repaid as a percentage of card sales, common in retail and hospitality.
- Business overdrafts — flexible, short-term borrowing for day-to-day cash flow gaps.
- Government-backed schemes — including the British Business Bank's Growth Guarantee Scheme and the Start Up Loans programme, which help smaller and newer businesses access finance through accredited lenders.
Supporting businesses across Hull and East Yorkshire
Rule 29 works with SMEs and entrepreneurs across Hull and East Yorkshire on the numbers behind growth — from day-to-day accounting to the bigger decisions, like whether to take on finance and how much it will really cost. This calculator is a starting point; for borrowing that's structured around your actual accounts and cash flow, we're happy to talk it through.
Thinking about financing your next move?
Get in touch with Rule 29 for advice tailored to your business — visit rule29.co.uk or speak to your usual Rule 29 contact.
Business loan calculator FAQs
How much can my business borrow?
It depends on affordability, trading history, credit profile and any security offered — there's no fixed formula lenders all use. Switch to "How much could I borrow?" above and enter what you could comfortably repay each month to get an estimate.
What's a typical interest rate for a UK business loan?
Rates vary widely by lender, loan type, term and your business's risk profile — secured loans are usually cheaper than unsecured ones. Compare the overall cost (including fees), not just the headline rate, when weighing up offers.
What is a business loan arrangement or setup fee?
It's a one-off fee some lenders charge to arrange the loan, commonly 2% or more of the amount borrowed. It can either be added to the loan balance (so you repay it over time, with interest) or paid separately when the loan is drawn down.
Should I choose monthly, quarterly or annual repayments?
Most business loans are repaid monthly to match regular income. Quarterly or annual repayments can suit seasonal businesses with irregular cash flow — choose whichever schedule best matches how money moves through your business.
Can I repay a business loan early?
Often, yes, but some lenders charge an early repayment or settlement fee. Check the loan agreement, or ask the lender directly, before assuming early repayment will reduce your total interest as much as you'd expect.
Do I need to offer security or a personal guarantee?
It depends on the loan size, your business's trading history and the lender's risk appetite. Even unsecured business loans often require a personal guarantee from a director, especially for younger businesses.
What credit score does my business need?
Lenders generally look at both the business's credit file and the personal credit history of its directors. Newer or lower-turnover businesses that don't meet a mainstream lender's criteria may still qualify through government-backed schemes such as Start Up Loans.
Are there government-backed business loan schemes in the UK?
Yes. The British Business Bank runs schemes including the Growth Guarantee Scheme and the Start Up Loans programme, both delivered through accredited lenders to help smaller and newer businesses access finance.
How is my monthly repayment calculated?
This calculator uses the standard amortising loan formula: a fixed periodic payment, based on the loan amount (plus any financed fee), interest rate and term, calculated so the balance reaches zero at the end of the loan.
Is this business loan calculator accurate?
It gives an illustrative estimate based on the figures you enter. Actual offers depend on a lender's own underwriting, fees and terms, so treat the results as a planning tool rather than a guaranteed quote — and talk to Rule 29 for advice specific to your business.