Business finance can be a significant expense, so it helps to understand what the repayments could look like before you apply.
Use our business loan calculator to estimate your weekly, fortnightly or monthly repayments based on the amount you want to borrow, your loan term and interest rate. You can also see how much interest you could pay over the life of the loan and how changing the figures affects the overall cost.
Business loan calculator
Crunch the numbers to see what your repayments could look like
Your estimated repayments
$98.62
| Total interest paid: | Total amount to pay: |
| $1233.43 | $5,143.99 |
These figures are estimates only, based on the details you enter, and don’t represent a formal quote or loan offer. Lender fees and other charges aren’t included.
How to use Savvy’s business loan repayment calculator
Crunching the numbers on your repayments is easy with Savvy’s business loan calculator. Simply follow these steps:
- Enter your desired loan amount (up to $300,000 for unsecured business loans or $5,000,000 for secured)
- Select a loan term between one and seven years
- Enter the interest rate
- Choose a weekly, fortnightly or monthly repayment option
- See the breakdown of the total amount to pay, as well as the total interest payable
You can adjust each of these variables to see what impact they have on the cost of your business loan repayments and the loan as a whole.
The default interest rate in the calculator is indicative of the lowest commercial rate available through Savvy right now. It may not be reflective of the rate you’re offered by your lender.
What interest rate will I get on my business loan?
There isn’t one set interest rate for a business loan. The rate you’re offered will depend on your business and financial position, as well as the type of finance you apply for.
Lenders may consider factors such as your business revenue, how long you’ve been trading, your business and personal credit history, the industry you operate in and how much you want to borrow.
Whether the loan is secured can also make a difference. A secured business loan uses an asset as collateral, reducing the lender’s risk and potentially helping you qualify for a lower rate. Unsecured loans don’t require an asset as security, but will often come with higher rates.
The difference can add up. For example, a $50,000 business loan over five years at 8% p.a. would have monthly repayments of around $1,014 and cost approximately $10,829 in interest. At a rate of 11% p.a., repayments would rise to around $1,087 and total interest to approximately $15,227, almost $4,400 more.
Interest charged on money borrowed for business purposes may be tax-deductible, though you can only claim the portion relating to its business use. Any funds put towards personal expenses generally won’t be deductible.
If you're unsure, speak to your accountant or tax adviser about what applies to your circumstances.
What else affects the cost of a business loan?
Your interest rate isn’t the only thing that determines how much your business loan will cost. The loan term and any fees charged by the lender also need to be considered.
Loan term
A longer term spreads the loan over more repayments, reducing the amount you need to pay each month. However, because you’re paying interest for longer, it generally increases the total cost.
For example, a $50,000 loan at 8% p.a. over five years would have repayments of around $1,014 per month and cost approximately $10,829 in interest. Reducing the term to three years would increase repayments to around $1,567 per month, but cut the interest bill to approximately $6,405, saving more than $4,400.
Lender fees
You may also need to factor in lender fees. These can include one-off costs such as application or establishment fees, as well as ongoing monthly fees, late payment fees or early repayment costs. These can stack up, so it’s worth considering these alongside the interest rate when working out the overall cost.
Fees aren’t included in our business loan calculator, so the actual cost of your loan may be higher than the estimate shown.
How to apply for a business loan with Savvy
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Tell us about your business
Complete a short online form with details about your business, how much you want to borrow and what the funds are for.
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Provide your financial information
Depending on the lender and loan type, you may need to provide documents such as bank statements, financials or identification.
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Explore your loan options
We’ll look across our lender panel for suitable business finance options based on your circumstances.
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Submit your application
Once you’re happy with an option, we’ll help prepare and submit your application to the lender.
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Receive your business funds
If approved, the lender will finalise the loan and release the funds.
