UK Business Loan Calculator — Monthly Repayments & Total Interest
Built for UK SMEs, freelancers, sole traders and limited-company directors comparing business finance options. Enter loan amount, APR and term — the calculator shows the monthly repayment, total interest, total repayable and effective monthly cost. Reference tables below cover typical APRs from high-street banks, alternative lenders, and government-backed schemes.
Loan repayment calculator
Typical UK business loan rate ranges (2026)
| Lender type | Loan size | Typical APR | Term |
|---|---|---|---|
| High-street bank (secured) | £25k-£500k+ | 5-9% | 1-10 years |
| High-street bank (unsecured) | £5k-£100k | 8-14% | 1-5 years |
| Alternative lender (Funding Circle, iwoca) | £5k-£500k | 8-18% | 6 months-6 years |
| Asset finance | £5k-£10m | 5-12% | 2-7 years |
| Invoice finance | vs invoice value | 1-5% per month | 30-90 day cycles |
| Start Up Loans (gov-backed) | £500-£25k | 6% fixed | 1-5 years |
| Recovery Loan Scheme (successor) | up to £2m | 8-15% | up to 6 years |
| Merchant cash advance | £5k-£200k | 20-50%+ APR equiv | 3-18 months |
Rates are indicative for established SMEs with reasonable credit. New businesses, poor credit, or specialist sectors (catering, retail) often pay 2-5 percentage points more. Always check the representative APR.
Bounce Back Loan reference (legacy scheme)
The Bounce Back Loan Scheme closed to new applications in March 2021. Existing borrowers can use the Pay As You Grow options: extend to 10 years, take a 6-month payment holiday (once per loan), or pay interest-only for 6 months (up to three times).
| Loan amount | 6-year monthly | 10-year monthly | Total interest (6-yr) |
|---|---|---|---|
| £10,000 | £178 | £94 | £668 |
| £25,000 | £446 | £236 | £1,670 |
| £50,000 | £891 | £472 | £3,341 |
Frequently asked questions
How is a UK business loan calculated?
UK business loan monthly repayments use the standard amortisation formula: M = P × r × (1+r)^n / ((1+r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual APR ÷ 12), and n is the term in months. So a £50,000 loan at 8% APR over 5 years: monthly repayment is around £1,013, total interest £10,800, total repayable £60,800.
What's a typical UK business loan APR?
As of 2026: high-street banks for secured term loans 5-9%; unsecured 8-14%; alternative lenders 8-18%; Start Up Loans (gov-backed) 6% fixed; merchant cash advance APRs can exceed 30%. Always compare APR not headline interest rate — APR includes fees so it's the true comparison.
What size deposit / security do UK lenders want?
Unsecured business loans (under ~£25k for many lenders) require no collateral but charge higher rates and may require a personal guarantee from directors. Secured loans use commercial property, equipment or director's residence as collateral, with LTV typically 70-80%. Asset finance and invoice finance are secured against specific assets.
Can I get a business loan as a sole trader?
Yes — sole traders are treated as the individual for credit purposes. You'll need 2 years of Self Assessment returns, business bank statements (6-12 months), and a clear business case. Start Up Loans offers £500-£25,000 to new sole traders and partnerships at 6% fixed with free mentoring — often the best first-stop.
How is Bounce Back Loan repayment calculated?
Bounce Back Loans were 6 years at 2.5% APR with the first 12 months interest-free. Optional 10-year extension via Pay As You Grow. On a £30,000 loan over 6 years: years 1 interest-free, then monthly repayment of about £540 for the remaining 60 months, total interest ~£2,250.