See What a Business Term Loan Really Costs
A business term loan can give you a lump sum to invest in growth, then repay it over time with clear, predictable instalments. Use this calculator to estimate repayments, total interest and how a term loan would fit into your cash flow before you apply.
Who it's for
Business owners looking at short-to-medium-term funding for working capital, renovations, equipment, stock or other projects, and wanting to understand what repayments on an unsecured or lightly secured term loan might look like.
What it calculates
Estimates regular repayments (weekly, fortnightly or monthly), total interest and total amount repaid over the life of a business term loan, with options to flex loan amount, interest rate and term length.
Why it matters
Business term loans are fast and flexible but often carry higher rates and tighter terms than fully secured loans. Modelling the numbers upfront makes it easier to pick a structure that supports your plans without putting unsustainable pressure on cash flow.
Business Term Loan Calculator
Loan details
Between $5,000 and $500,000 for typical business term loans.
Indicative only — unsecured loans typically price higher than secured loans.
3–60 months (0.25–5 years).
Fees & structure
Usually 0 for term loans. Max 50%.
Affordability lens (optional)
When the numbers look right, compare real offers.
The next step is to compare real offers and see which lender and structure gives you the best blend of speed, flexibility and cost.
How this Business Term Loan Calculator works
You enter a proposed loan amount, interest rate, term, repayment frequency and any fees or balloon, then the calculator uses standard amortisation formulas to estimate regular repayments and total interest over the life of the loan. If you add simple profit and existing-debt details, it also shows how those repayments might sit within your monthly cash flow as a rough debt-service ratio.
PMT = P × r / (1 – (1 + r)–n)
Where P is the loan amount (less the present value of any balloon), r is the per-period interest rate (annual rate ÷ 12, 26 or 52 depending on frequency) and n is the number of periods. Total interest is repayments × periods + balloon – principal. Total cost adds upfront and ongoing fees.
The goal is to give you a clear, practical sense of how a term loan feels in your business — not to replicate any specific lender's credit model.
How to interpret your results
- Repayments sit comfortably within profit. Your structure is likely in the right ballpark — focus on fine-tuning amount and term, then compare offers.
- Repayments are only just manageable. Consider extending the term slightly, borrowing a bit less, or pairing the loan with cost-base or working-capital changes to create more headroom.
- Repayments look clearly too high. That's a prompt to rethink how much you borrow, how quickly you repay, or whether a different facility (overdraft, line of credit) better matches a short-term need.
- Remember the smooth-schedule assumption. This uses a fixed rate and even repayments. Real-world timing of inflows and seasonality should be tested in your broader cash-flow forecast.
How to find a repayment that fits your budget
- Start with your average monthly profit and set a comfort percentage for total debt servicing (existing + new).
- Adjust amount and term until your repayment and DSR fall within that comfort band while still funding what you need.
- Compare a few scenarios — for example, a slightly higher repayment over a shorter term versus a lower repayment over a longer term — and weigh interest saved against cash-flow pressure.
- Feed the preferred structure into your detailed cash-flow or runway planning tools to see how it behaves in slower months or with extra expenses.
Calculator assumptions
This calculator produces estimates based on the standard annuity amortisation formula and assumes a constant interest rate across the full loan term. Where a balloon is entered, its present value is netted off the principal that is amortised. Establishment fees, ongoing fees and balloon percentages are included only when you enter them. Lender-specific calculation conventions (rounding, day-count basis, deferred fees) may produce minor differences from real offers. The rate and term you enter are the most influential inputs — and the least certain — so the most useful way to use this tool is to test multiple scenarios. This calculator does not constitute financial, tax or credit advice. Reviewed by the LoanGorilla editorial team — last updated May 2026.