Business Loan Calculator UK
Our free UK business loan calculator instantly estimates your monthly repayments and total cost of borrowing for any commercial loan amount. Whether you are financing equipment, expansion, or working capital, plan your repayments with confidence.
Monthly Repayment
Total Repayment
£60,829
Total Interest
£10,829
Business loans often involve arrangement fees and security. This calculator provides an estimate of capital and interest repayments only.
How UK Business Loan Repayments Are Estimated
This UK Business Loan Calculator processes your input values using standard mathematical formulas and UK-specific parameters. Enter the required values into the input fields provided — all fields are labelled clearly with units. The calculator updates your result in real-time as you type, using validated equations to ensure accuracy. No manual calculation is needed; simply enter your values and read the output directly. For financial or health-critical decisions, we recommend confirming results with a qualified professional.
Frequently Asked Questions
How is a UK business loan repayment calculated?
Business loan monthly repayments are calculated using the standard amortisation formula: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the loan principal, r is the monthly interest rate, and n is the number of monthly payments. This gives a fixed monthly repayment covering both interest and principal reduction.
What types of business loans are available in the UK?
UK businesses can access unsecured term loans, secured business loans, revolving credit facilities, invoice finance, asset finance, and government-backed Start Up Loans. Interest rates vary significantly depending on business trading history, credit profile, and whether security is offered.
What is the typical interest rate on a UK business loan?
UK business loan interest rates in 2026 typically range from approximately 6% APR for established businesses with strong credit to over 30% APR for newer or higher-risk businesses. Secured loans generally attract lower rates than unsecured borrowing. Government-backed schemes may offer more competitive rates.
Can a start-up get a business loan in the UK?
Yes, though lenders typically require at least 1–2 years of trading history for standard business loans. Start-ups may be eligible for the British Business Bank's Start Up Loans scheme, offering loans of up to £25,000 at a fixed 6% interest rate with free mentoring support.
Is business loan interest tax-deductible in the UK?
Yes. Interest paid on a UK business loan taken out wholly for business purposes is generally tax-deductible as a business expense, reducing your corporation tax or income tax liability. Principal repayments are not tax-deductible. Always consult a UK accountant or tax adviser for your specific circumstances.