Debt & finance

Business loan repayment calculator

Two loans with the same rate can differ enormously in cost. Term length, not headline rate, is usually what determines the total interest a business pays.

Inputs

Result

Monthly repayment

USD 6,300.56

Total interest (scheduled)
USD 78,033.5
Total repaid
USD 378,033.5
Interest in first payment
USD 2,375
Payoff time with extra repayments
5 years
Interest saved by extra repayments
USD 0
Annual debt service
USD 75,606.7
  • Lenders assess repayments against EBITDA after tax, drawings and maintenance capex.

How to use this calculator

  1. 1Enter the loan amount, annual interest rate and term in years.
  2. 2Add any extra monthly repayment you intend to make.
  3. 3Compare total interest with and without the extra payment.

How amortisation actually works

Every repayment splits between interest on the outstanding balance and principal reduction. Early payments are mostly interest, which is why refinancing repeatedly resets you to the expensive end of the schedule.

Extending a loan from five to seven years lowers the monthly payment but can raise total interest by 40% or more.

Borrowing against a business

Lenders test serviceability on EBITDA less tax, owner drawings and maintenance capex — not on revenue. Model the repayment against that figure before you apply.

If the loan funds an acquisition, check that the target's own cash flow covers the repayment with at least 1.25x cover; anything tighter leaves no room for a slow quarter.

Call this tool from the API

Every calculator on this site is also an endpoint. Get a free key from the developer page and call it from your product, spreadsheet or AI agent.

curl -X POST https://utopiavalue.co/api/v1/tools/loan-repayment-calculator \
  -H "Authorization: Bearer $UTOPIA_API_KEY" \
  -H "Content-Type: application/json" \
  -d '{"loanAmount":300000,"annualRatePercent":9.5,"termYears":5,"extraMonthlyPayment":0,"currency":"USD"}'

Frequently asked questions

Is a longer term ever the right choice?

Yes, when cash flow is tight or the asset has a long life. Just price the extra interest as the cost of that flexibility.

How much do extra repayments save?

On a typical five-year business loan, an extra 10% each month often removes six to nine months of payments.

Does this include fees?

No. Add establishment and ongoing fees to the loan amount if you want an all-in cost.