Business Loan Repayment Calculator

Work out how much your preferred business loan will cost overall with Savvy’s simple calculator today.

Written by 
Savvy Editorial Team
Savvy's content writing team are professionals with a wide and diverse range of industry experience and topic knowledge. We write across a broad spectrum of finance-related topics to provide our readers with informative resources to help them learn more about a certain area or enable them to decide on which product is best for their needs with careful comparison. Meet the team behind the operation here. Visit our authors page to meet Savvy's expert writing team, committed to delivering informative and engaging content to help you make informed financial decisions.
Our authors
, updated on July 3rd, 2024       

Fact checked

At Savvy, we are committed to providing accurate information. Our content undergoes a rigorous process of fact-checking before it is published. Learn more about our editorial policy.

Business Loans Banner - Business owners calculating their loan repayments on a laptop
Lumi Logo
prospa logo
Angle Finance Logo

Calculate your business loan repayments

Taking out a loan to help your business cover its expenses is often a highly useful way to manage your debts. It’s important to know what each loan may end up costing in the long-term, though, which is why you can use Savvy’s business loan calculator to give yourself a better idea of what you might pay for financing.

Your estimated repayments


Total interest paid: $1233.43
Total amount to pay: $5,143.99

Types of business loan

Why compare business loans through Savvy?

How to compare loans before using the business loan repayment calculator

More questions about business loans and our commercial loan calculator

How long does it take to get approved for a business loan?

Business loans are able to be approved within just one hour of having the application submitted and can be fully processed and funded within three. However, the time it takes to get approved will vary depending on the complexity of your application and the state of your business’ finances, as well as the particular lender you elect to go with.

Will I need to make a deposit for my business loan?

No – as you can see in our commercial loan calculator, there’s no requirement for you to put forward a deposit as part of your business loan. There’s nothing stopping you from utilising some of your business’ available cashflow or savings towards whichever expenses need covering, though, which reduces the size of your loan and therefore the interest you’ll have to pay.

How do I qualify for a business loan?

The key qualification criteria for businesses when seeking out finance revolve around the revenue they generate and their time in business. Your business can be approved for financing when turning over at least $5,000 per month, while you’ll generally need to have been operating for a minimum of six months. It’s important to note that lenders’ eligibility criteria can vary significantly, so you should always compare these before you apply.

Which factors can affect the cost of my business loan?

The most prominent factor which can affect the cost of your small business loan is risk. Lenders set interest rates based on how comfortable they are that your business will be able to consistently support the loan’s repayments. This may be affected by variables such as its monthly revenue (and its overall consistency), time in business, trading history, credit score and revenue projections, among others.

Which documents will I need for my loan application?

The only documents required for most business loans, which is generally the case for those under $200,000 to $250,000, are:

  • Photo ID
  • Your business’ online banking information
  • Your business’ ABN/ACN and GST registration
  • Record of your business’ rent costs


For larger loans, you’ll need to supply business financials, which may include profit and loss statements, accounts receivable and payable, balance sheets and a business plan which projects revenue.

Is equipment finance cheaper than a business loan?

Yes – equipment finance is a type of secured business loan which uses the purchased asset, which may be machinery or anything else, as collateral for the loan. Because of this, it usually comes with lower interest rates than unsecured business loans. You can use Savvy’s equipment finance repayment calculator to work out the cost of taking out a similar loan and compare the difference between that and the small business loan repayment calculator on this page.

More on how to calculate your business loan repayments

How do I use the business loan calculator?

Our small business loan repayment calculator is very simple to use and highly effective. All you have to do is input your preferred loan amount, term and interest rate into the calculator and it’ll show you the overall interest you’ll be liable to pay and the total repayment figure at the end of your Australian business loan. You can also adjust the frequency of repayments to align with your business’ preferred cycle, which you can align with its rate of revenue generation.

The calculator is highly useful not only for providing an indication of the cost of your loan but also for allowing you to crunch the numbers on multiple loans. This enables you to compare different loan offers in the market more accurately, giving you more confidence around what sort of loan you might be signing up for. You might simply want to play around with different figures until you find one your business is most comfortable with, which is another great way to help you secure the best loan deal available for your business.

How do business loans work?

Business loans are a type of finance designed to be used by businesses for a wide range of purposes. Like most other loans, you’ll receive a lump sum upon having your application approved and signed off on by your lender and begin repaying your debt in instalments soon after with interest. Part of the appeal of these loans to business operators is that they can be used for just about any business purpose, with funds able to be distributed however the owner sees fit. This makes them highly useful, with many owner-operators using them to plug general financial gaps.

Additionally, you’re given the choice between unsecured and secured business loans. Unsecured loans are the most common for small businesses, as these are less likely to have the assets required to secure their loan. These are offered for as little as $5,000 up to a maximum of $500,000 in some cases and come with potential loan terms of between three months and five years. They’re more common and accessible in the market, so you may find they’re the better option for your business.

If you have the assets to use as security, though, you could opt for a secured business loan instead. These come with several key benefits, which lie primarily in their reduced interest rates and expanded borrowing power (which is because they’re considered safer by lenders). The amount you’re eligible to borrow will largely be informed by the value of the asset you’re utilising as collateral, as this will be used to recoup funds in the event your business is unable to support the loan repayments. You can borrow well above $1 million as a result, with potential terms of up to ten years.

How can I save money while repaying my business loan?

There are many ways you can go about reducing the cost of your business loan repayments, both in terms of your ongoing instalments and its overall cost across its term. It’s important to bear these in mind, as following some of these steps could make a significant difference to your business’ available funds once the loan is paid off. Some of the ways to go about reducing your loan’s cost include:

Choose a shorter loan term

As is the case with almost all loans, the shorter the repayment term, the less you’re likely to be required to pay in interest and fees. Loan debts which decrease at a faster rate will come with the bonus of reducing interest more quickly than a long-term loan would. For instance, a $30,000 loan at 5% p.a. over three years would cost $2,321 in interest, whereas the same loan over two years would only set you back $1,539, a saving of almost $800. It’s important to note, though, that shorter terms will result in higher repayments, which may not be an option if your business’ turnover can’t support it. It’s crucial above all else for your business to be generating enough revenue to comfortably support its repayments.

Make additional repayments

Most business loans come with the option to make additional payments above the minimum required amount per instalment. By paying above this level, you can reduce your loan term considerably and cut down on the interest and fees you may otherwise be required to pay. For example, a $50,000 loan at 5% p.a. over a term of three years would cost you $3,948 overall. However, by paying an extra $100 on top of its standard $346 weekly repayments, you’d save $932 for your business and trim its term by eight months. This can also reduce the instance of paying fees.

Put down a deposit (if possible)

Although you can borrow 100% or more of the value of your intended business purpose, paying some of your business’ savings towards a purchase can help you save. Many businesses wouldn’t be in a position to do this, but if yours is, it might be worth considering putting down a deposit and reducing your loan size (and the interest and fees you’ll pay as a result). As an example, instead of taking out a full $30,000 loan over two years at 6% p.a., you could put up $3,000 of your business’ cash reserve and save almost $200 overall. Every little bit can make a difference to your business.

Look for offers with low fees

Loan fees can be a substantial drain on your business’ funds, particularly with establishment fees of up to 3% of your total loan amount. While it may not seem like much, this charge on a relatively modest $50,000 business loan would cost $1,500. However, many lenders charge low or no establishment or annual fees, which could potentially help your business save thousands over the term of your repayment cycle.

Apply for a secured business loan

If your business has an asset which can be used as collateral for a loan, such as equity in a commercial property or expensive equipment such as machinery, a secured loan can give you access to finance at a lower overall cost. Because these loans are seen as safer from a lender’s perspective (given that there’s a tangible asset which can be used to recoup any potential lost funds), they typically come with lower interest rates and fees overall.

Are there other types of business finance to choose from?

Yes – you aren’t solely limited to standard business loans when seeking out finance for your business. There are other potential sources of funds which could be more useful or suitable for your business’ particular needs, so it’s important to explore your options before diving into the process:

Commercial line of credit or overdraft

A line of credit is a type of business finance whereby you’re approved for a certain limit and can withdraw funds up to that amount whenever you see fit. This avoids the burden of managing a lump sum over a long period, instead enabling you to withdraw, repay and withdraw again to suit your business’ needs. These arrangements typically come with higher rates and fees, however.

An overdraft facility is very similar to a line of credit in principle, except it’s attached to your business’ bank account and enables you to withdraw beyond $0. A factor which is also relevant is that overdrafts come without any set repayments, unlike loans and lines of credit, instead only requiring you to pay the interest charged each week, fortnight or month. Like lines of credit, though, added costs are generally quite high.

Inventory finance

Inventory finance is another type of finance agreement available to businesses who deal in selling stock. This allows them to have the cost of a supply order paid by a lender, thereby enabling them to receive their product and sell it before repaying the seller. This functions as a revolving line of credit which can be useful for businesses looking to cover short debtor periods, especially if it takes a considerable time to sell their product.

Invoice finance

If your business has outstanding invoices yet to be paid by your clients, you could look to invoice finance as a potential solution to release your funds. There are two types of invoice finance: invoice factoring and invoice discounting. The former allows you to sell your outstanding invoices to a third party for up to 90% to 95% of their value, after which they’ll pursue payment from your client directly and, once received, will pass on the remainder of its value minus fees. Invoice discounting is a line of credit secured by the value of your outstanding invoices which can help you access up to 90% of their value while still awaiting payment.

Bridging finance

Bridging finance is taken out by businesses who are in between qualifying for larger finance but need access to funds sooner. This is typically secured by an asset and enables you to borrow up to $1 million in some cases. This can be repaid over as little as two weeks up to 12 months. These loans often come with higher rates and fees than standard loans, however, so they may not be ideal if you simply need a loan detached from any larger finance application.

Still looking for the right finance for your business?

Explore a range of business loan options suitable to your financing needs and apply online through Savvy today.