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Business loan / asset finance

Business Loan Repayment Calculator

Standard amortising calculation. Drop in the principal, the APR and the term in months — see your monthly payment, total repaid and the real interest cost. No surprises at month 36.

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Common questions

What does APR include?
Annual Percentage Rate is the interest plus most product fees expressed as one annual figure. Some lenders quote 'representative APR' (what 51% of accepted applicants get) — your actual rate may differ. Use the rate the lender showed you on YOUR specific quote.
Is there a difference between APR and AER?
Yes. APR is for borrowing (loans, credit cards). AER is for saving (deposits). Same maths underneath, different label depending on which side of the deal you're on.
How is the monthly payment calculated?
Standard amortisation formula: M = P × r ÷ (1 − (1+r)^−n), where P is principal, r is monthly rate (APR ÷ 12), n is months. Each payment chips a tiny bit off the principal early on (mostly interest) and a bigger bit later — that's why total interest stays high if you stretch the term.
Can I overpay?
Most UK business loans allow overpayment without penalty above a threshold; some asset finance contracts charge an early-settlement fee. Always check the agreement. The interest saving from overpaying compounds — usually worth it if your business has a positive return on capital.
Should I take this loan?
Compare the loan APR to your business's expected return. If a £10k loan at 12% lets you generate £15k of profit, it's earning its keep. If it's covering a permanent cashflow gap, the loan is a symptom, not a solution.