Business Loan Repayment Calculator — Instant Amortisation Table

How it works

Enter the loan amount, the APR (annual percentage rate), and the loan term in months or years. The calculator uses the standard amortisation formula to compute a fixed monthly payment, then breaks every payment into principal and interest in the schedule. Total cost = monthly payment × number of payments.

Common mistakes

• Comparing on monthly payment alone — a longer term gives a smaller monthly payment but a much larger total interest bill. A $50,000 loan at 8% APR costs $10,829 in interest over 5 years (at $1,014/month) versus $22,797 over 10 years (at $607/month) — the smaller monthly figure feels easier, but you pay $11,968 more interest for the same principal. Always compare total cost, not just the monthly line.
• Quoting the headline rate, ignoring fees — origination fees, processing fees, and prepayment penalties can add 1–3% to the effective cost of borrowing. APR captures these; the headline interest rate does not. A 7% loan with a 3% origination fee can be more expensive than an 8% loan with no fees.
• Borrowing the maximum approved — the lender's approval ceiling is set by what you can theoretically repay, not what you actually need. Borrowing $200,000 when $80,000 funds the project just adds $10,000/year of interest expense and ties up future borrowing capacity for no benefit. Match the loan to the project, not to the cap.

When to use this calculator

Use this when you have a loan amount and APR in hand and want to model monthly payments, total interest, and the principal/interest split over the life of the loan. It is the right tool for SBA, term loan, or commercial loan comparisons and for checking what a refinance would actually save.

If you are deciding how much to borrow against future cash flow, pair this with the Cash Flow Calculator to confirm the monthly payment fits. To evaluate whether a debt-funded investment actually pays off, run the same numbers through the ROI Calculator.

Worked example

A US small business takes a $200,000 SBA 7(a) loan to fund a new location build-out. The rate is 11.5% APR (prime + 3.0% for an SBA 7(a) over $50,000 at the time of writing) on a 10-year fully-amortising term. The monthly payment formula is Monthly Payment = P × r × (1+r)^n / ((1+r)^n − 1) where P is the $200,000 principal, r is the monthly rate (0.00958) and n is 120 months. That works out to a monthly payment of approximately $2,814.

Total paid over 120 months = $2,814 × 120 = $337,680. Of that, $200,000 is principal repayment and $137,680 is interest. The interest paid is 69% of the original loan amount — a sobering number, but spread across a decade and against the alternative of a conventional bank loan that the business probably could not qualify for at this stage.

Compare to a conventional bank loan on the same principal and term at 9.5% APR (assume the business had three years of strong financials, two years of profitability, and 20%+ equity in collateral — the bar for non-SBA approval): monthly payment $2,587, total cost $310,440, total interest $110,440. The SBA loan costs an extra $27,240 over the term. That premium is buying easier qualification, longer amortisation options up to 25 years for real-estate loans, a smaller down payment, and willingness to lend in the first place. For most businesses under three years old or without collateral, the $27k premium is the cost of accessing capital at all.

The 2026 small business lending landscape — USA, UK, South Africa

Small business borrowing costs in 2026 vary by a factor of three across the three main English-speaking SME markets, and the spread inside each market — from cheapest government-backed product to most expensive alternative lender — runs even wider. Before plugging a rate into this calculator, it helps to know where on the curve your loan offer actually sits.

The table below summarises the headline 2026 rate bands for the most common SME credit products in each region. Use it as a sense-check on any loan offer — if a quoted rate is well outside the band for that product type and region, ask the lender to explain why.

Three regional patterns are worth absorbing before borrowing. USA SMEs benefit from the deepest small-business credit market in the world, with the SBA providing partial guarantees that get bank capital into businesses that wouldn't otherwise clear conventional underwriting. UK SMEs have a similar guarantee architecture under the Recovery Loan Scheme and its successor the Growth Guarantee Scheme, but with materially thinner alternative-lender supply than the US. South African SMEs face the highest absolute rates because of the SARB's inflation-fighting stance, but offsetting that, developmental lenders (SEFA, SEDA, IDC) price meaningfully below commercial banks for qualifying businesses.

The five UK SME borrowing structures

UK SMEs in 2026 borrow through five fundamentally different product structures, each with its own pricing, term, security, and use-of-funds conventions. Choosing the wrong product for the cash-flow profile is one of the most common avoidable mistakes in UK SME finance.

• Term loan — fixed monthly repayments over 1-7 years, pricing 9-13% APR unsecured or base + 2-4% secured. The product this calculator models by default. High-street banks (HSBC, NatWest, Barclays, Lloyds) and alternative lenders (Funding Circle, iwoca, Capital on Tap) compete here.
• Growth Guarantee Scheme (GGS) and Recovery Loan Scheme (RLS) legacy — government-backed unsecured loans up to £2M (£1M cap for some Northern Ireland Protocol borrowers), 6-year term, 70% government guarantee with the borrower still personally liable. Pricing 6-9% APR. RLS closed to new applications in 2024; GGS is the active 2026 product administered by the British Business Bank.
• Invoice finance — factoring (lender collects) or invoice discounting (you collect) advances 80-90% of unpaid invoice value at a 0.5-2.5% fee plus discount margin. Priced as service fee not APR, but annualised it's typically 12-30%. Useful for cash-flow smoothing, not capital projects.
• Asset finance (HP, lease) — for vehicles, plant, equipment. 3-7 year term, 5-12% APR depending on asset and security, with the asset itself as collateral. Lower deposit requirement than a conventional loan because the lender retains title until the final payment (HP) or for the lease term.
• Bounce Back Loan Scheme (BBLS) aftermath — not a current product but still material: roughly £26 billion of pandemic-era BBLS loans remain outstanding in PAYG repayment across UK SMEs, originally 100% government-guaranteed at 2.5% fixed. Existing BBLS borrowers can extend the original 6-year term to 10 years and pause repayments under the Pay As You Grow programme — relevant if you're already servicing one and need this calculator to model a different new loan on top.

For UK-specific rate modelling, see the UK business loan calculator variant which pre-fills Bank of England base-aware defaults. For underlying programme rules, the British Business Bank publishes scheme details and authorised-lender lists.

US small business lender taxonomy

US small business credit splits across four lender categories with different underwriting bars, pricing, and product fit. Knowing which category your business actually qualifies with prevents the months of wasted applications most first-time borrowers go through.

• Big-3 banks (Chase, Bank of America, Wells Fargo) — primarily underwrite conventional loans above $500k for established businesses with 3+ years operating history, strong personal credit (720+), and existing banking relationship. Pricing 8-11% APR. Decline rates on cold applications are high; most successful applicants come through existing private-banking or business-banking relationships.
• SBA preferred lenders (Live Oak Bank, Newtek, Huntington, Byline) — specialist banks that have SBA Preferred Lender Program (PLP) status, letting them approve 7(a) loans without sending each application to the SBA for separate review. Faster decisions (typically 30-45 days vs 60-90 for non-PLP). Pricing follows the SBA cap (Prime + 3.0% on loans above $350k, tiered upward for smaller loans). Cross-link to the SBA loan calculator for program-specific modelling.
• CDFIs (Community Development Financial Institutions) — mission-driven lenders certified by the US Treasury to serve underserved markets. CDFIs typically lend smaller amounts ($50k-$500k), accept thinner credit files, and price 8-13% APR. Examples: Accion Opportunity Fund, LiftFund, CDC Small Business Finance. Often the right path for borrowers in low-to-moderate-income census tracts or with personal credit scores in the 650-699 range.
• Online / alternative lenders (OnDeck, Bluevine, Funding Circle US, Credibly) — fast-decision, higher-cost capital for businesses that can't wait 30-60 days or don't clear bank underwriting. Pricing 15-30% APR for term loans, with even higher effective rates on merchant cash advance products that quote "factor rates" instead of APR. Useful for short-term working capital; expensive for capital projects. Note: Kabbage's small-business lending operations were wound down by American Express in 2023-24, so Kabbage references in older guides are outdated.

For US-specific rate modelling across these categories, see the US business loan calculator. For Prime + spread SBA modelling, the SBA loan calculator handles 7(a), 504, and Express programs with current guarantee-fee tiers.

South Africa — SEDA, SEFA, IDC developmental lending

South African SMEs have access to a meaningful tier of state-supported lending that prices below commercial banks for businesses meeting development-finance criteria. Most SA SMEs never investigate these channels because they assume the qualification process is impenetrable; in fact for businesses with a clear B-BBEE story, sector alignment, and job-creation potential, these are often the lowest-cost capital available.

• SEDA (Small Enterprise Development Agency) — primarily non-financial business support (mentorship, business planning, market access) plus partnered micro-credit through SEFA. The first stop for early-stage businesses that need both capital and structured business-development support.
• SEFA (Small Enterprise Finance Agency) — direct lending up to R5 million per business, typically priced at prime + 2-3% (so 13.75-14.75% APR with prime at 11.75% in 2026), with terms up to 7 years. Wholesale lending arm also funds intermediaries (retail finance partners, co-operative banks) that on-lend in smaller tickets. Designed for B-BBEE-aligned, job-creating SMEs in priority sectors.
• IDC (Industrial Development Corporation) — DFI focused on industrial-scale projects from R1 million upwards, typically R10 million+. Pricing varies by deal structure but routinely below commercial rates because IDC takes equity or quasi-equity positions and structures patient capital. Particular focus on manufacturing, agro-processing, mining beneficiation, and renewable energy.
• Commercial bank SME loans (Standard Bank, FNB, Absa, Nedbank, Investec) — the conventional alternative, pricing secured term loans at 13-18% APR and unsecured at 18-25%. All four big banks have dedicated SME divisions but underwriting is conservative; most successful applicants have 3+ years of audited financials and an existing banking relationship.

For SA-specific rate modelling with SARB repo and prime defaults pre-filled, see the South Africa business loan calculator. For underlying programme rules, see SEFA's product portfolio at sefa.org.za and the IDC's Sector Development Strategy documents.

The personal-guarantee reality across all three markets

Personal guarantees on SME loans are not a negotiable feature in 2026 — they are the structural default in all three markets, and the few exceptions exist only at the largest loan sizes with the strongest balance sheets. Understanding what you are actually signing is the most important pre-borrowing legal step.

In the USA, personal guarantees are mandatory on every SBA-7(a) loan from any owner with 20%+ equity. In community-property states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin), the spouse may be required to consent or co-guarantee. Conventional bank SME loans typically require personal guarantees up to roughly $5M; above that, the bank may accept a corporate-only structure if the business has substantial unencumbered assets.

In the UK, the majority of SME term loans require personal guarantees from directors, even on government-backed RLS/GGS products where the 70% state guarantee does not relieve the borrower of personal liability. The Bounce Back Loan Scheme was an anomaly — no personal guarantees required, hence the high default rate. Standard unsecured directors' guarantees are typically structured as "joint and several" — meaning the bank can collect the full debt from any one director, not just a proportional share.

In South Africa, personal suretyships are near-universal on SME loans under R10 million. Spousal suretyships are common — if married in community of property, the spouse must consent under section 15 of the Matrimonial Property Act to any suretyship. Married out of community without accrual, spousal consent is not required but is often still sought commercially.

"Joint and several" is the phrase to understand in all three markets. It means each guarantor is liable for the full debt, not just a pro-rata share. If three directors each sign a joint-and-several guarantee on a $300k loan and two go bankrupt, the third pays $300k — not $100k. Limited liability of the business entity does not shield personal guarantors from this exposure.

Origination fees and the APR-vs-rate gap

The headline interest rate quoted on a loan offer is almost never the true cost of borrowing. APR (annual percentage rate) bakes in origination fees, processing fees, and any other up-front charges; the headline rate doesn't. The gap is typically 50-200 basis points and can shift the lowest-cost-offer ranking entirely.

Typical 2026 origination-fee ranges by lender type:

• SBA-7(a) guarantee fee — tiered by loan size: 0% during current SBA fee-waiver windows on loans up to $1M (verify against the current SBA fee notice), 0.55% on $1M-$1.5M, 0.75% on $1.5M-$2M, 0.85% on $2M-$5M. Charged on the guaranteed portion only, not the full loan.
• US conventional bank loans — 0-3% origination, plus document prep, appraisal, and recording fees that add a few hundred dollars more.
• US alternative lenders — 2-5% origination is typical; some merchant cash advance products bury fees in a "factor rate" that translates to effective APRs north of 50%.
• UK bank and alternative lenders — arrangement fees 1-3% typical, sometimes capitalised into the loan rather than deducted from drawdown. iwoca, Capital on Tap, and Funding Circle UK all charge arrangement fees in this range.
• SA commercial banks — initiation fees regulated by the National Credit Act at R1,207.50 maximum on credit agreements above R8,000 (2026 figures; verify against the current NCA schedule), plus monthly service fees of R69 per month — small in absolute terms relative to US/UK norms.

Worked example: a $100,000 5-year loan at a 7% headline rate with a 3% origination fee. The fee is deducted from drawdown, so the business receives $97,000 in hand but services a $100,000 face principal. Monthly payment on the face principal is $1,980.12 (P = $100,000, r = 0.07/12, n = 60). To find the true APR, we solve for the rate that equates the $97,000 net proceeds to 60 monthly payments of $1,980.12 — the answer is roughly 8.29% effective APR, 129 basis points above the headline. A "cheaper" 8% headline loan with no origination fee would be cheaper still on a true-APR basis.

Practical guidance: always ask for APR not just headline rate, and always compute the dollar amount of fees in absolute terms. A 3% origination on $100k is $3,000 — a real number you can compare across offers.

Loan affordability — the EBITDA and DSCR test most lenders apply

Lenders don't lend on what you say you can repay; they lend on what their underwriting model says you can repay. The standard tool across all three markets is the Debt Service Coverage Ratio (DSCR), defined as annual EBITDA divided by annual debt service (principal + interest payments).

Typical DSCR thresholds in 2026:

• Conventional bank term loan — DSCR ≥ 1.25x (i.e. EBITDA must be at least 125% of annual debt service)
• SBA-7(a) — DSCR ≥ 1.15-1.25x as a minimum, with most preferred lenders preferring 1.25-1.50x for unsecured or thinly-secured loans
• Commercial real-estate loans — DSCR ≥ 1.20-1.40x depending on property type and stabilisation
• Asset finance — generally more permissive (1.10-1.25x) because the asset itself collateralises the loan

Worked example — reverse-solving loan capacity from EBITDA: a small business with $50,000 annual EBITDA wants to know its maximum borrowable amount for an SBA-7(a) loan at 10% APR over 7 years.

Step 1: Apply DSCR floor. If the lender requires 1.50x, maximum allowed annual debt service is $50,000 / 1.50 = $33,333. Monthly payment cap is $33,333 / 12 ≈ $2,778.

Step 2: Reverse the amortisation formula. With monthly rate r = 0.10/12 = 0.00833 and n = 84 months, the loan capacity is P = M × ((1+r)^n − 1) / (r × (1+r)^n) = $2,778 × ((1.00833)^84 − 1) / (0.00833 × (1.00833)^84) ≈ $167,300.

Step 3: Sense-check. At $167,300 borrowed for 7 years at 10%, total interest is roughly $66,000 — about 40% of principal in interest over the term. That's the price of accessing capital at SBA-tier rates with $50k EBITDA backing.

If your DSCR comes in below the lender's floor, the three levers are: borrow less (smaller principal, lower monthly payment), borrow longer (extend term to reduce monthly payment), or grow EBITDA (improve operating numbers before applying). Lenders prefer the third lever but will work with the first two.

Consolidate, refinance, or take an additional term loan?

Three different decisions get conflated routinely. Each has a different right answer and different concrete signals.

• Refinance — replace one loan with another at better terms. Signal: market rates have dropped 100 basis points or more since you took the original loan, AND you have at least 3 years of remaining term to recoup the closing costs of the refi. If you've only got 18 months left, refi savings rarely cover the new origination fees.
• Consolidate — combine multiple outstanding debts into a single loan. Signal: you have 3+ separate facilities with different payment dates, varying interest rates, and the administrative load is starting to cause missed payments or cash-flow stress. The economic case is usually weaker than the operational case — a consolidation rarely lowers your blended rate by much, but it does reduce 3-5 monthly debits to 1.
• Additional term loan on top of existing facilities — borrow more for a specific new investment without touching existing debt. Signal: existing loans are performing on schedule, your DSCR including the projected new monthly payment still clears the lender's threshold, AND you have a specific investment thesis with quantified ROI. Don't borrow more just because credit is available.

The most common mistake is calling for a refinance when the real problem is a cash-flow timing mismatch that a different product solves better — invoice finance or a working-capital revolver rather than restructuring term debt.

Personal credit score impact on SBA and conventional pricing

For US small businesses, personal FICO score is the single most important determinant of which lender bracket you qualify with — frequently more important than business cash flow on loans below $250k where business financials are still thin. Equivalent metrics apply in UK (Experian Business Score 0-100) and SA (TransUnion / Experian SA scores).

• FICO 700+ — unlocks best SBA-7(a) rates (Prime + 2.75-3.0% at the cap) and most conventional bank programs. Personal financial statements still required but underwriting moves on cash-flow merit.
• FICO 650-699 — SBA still possible but priced toward the higher end of the cap, often at Prime + 4.5-6.0%. Some conventional banks decline at this band; CDFIs and specialist lenders fill the gap.
• FICO 600-649 — conventional bank loans unlikely. SBA possible only with strong business financials and explicit lender willingness; otherwise alternative lenders (OnDeck, Bluevine) at 15-25% APR or asset finance against specific collateral.
• FICO below 600 — invoice factoring, merchant cash advance, or revenue-based financing territory. Effective APRs typically 30%+. Improve the credit score before borrowing for any capital project; the rate spread is enormous.

UK equivalent: Experian Business Score 60+ unlocks high-street unsecured product; 40-60 pushes you toward alt lenders and asset-backed structures. SA equivalent: business credit reports from TransUnion or Experian SA, with the major banks looking for at least 24 months of trading history alongside the principal's personal credit profile.

Region- and product-specific calculators

This parent calculator handles the universal amortisation math. For region-specific rate defaults, regulatory context, and product nuances, pair it with the variant below that matches your situation:

• UK Business Loan Calculator — Bank of England base-aware defaults, GGS/RLS legacy modelling, asset-finance and invoice-finance comparisons in sterling. Use this if you're borrowing from a UK lender or comparing UK products.
• US Business Loan Calculator — Prime-linked defaults, conventional bank vs alternative lender modelling, CDFI and SBA references in dollars. Use this for any US lender other than the dedicated SBA programs.
• SBA Loan Calculator (7(a), 504, Express) — current SBA guarantee-fee tiers, program-specific rate caps, and worked examples for each of the three main SBA products. Use this if you are specifically working with the SBA.
• Equipment Finance Calculator (Loan vs Lease) — equipment loan vs capital lease vs operating lease with Section 179 expensing and bonus depreciation modelled. Use this if the borrowing is asset-specific.
• South Africa Business Loan Calculator — SARB repo and prime-aware defaults, SEFA/IDC developmental lending references, NCA fee structures in rand. Use this for any SA lender.

Frequently Asked Questions

Related calculators

Try these scenarios

Pre-filled examples — click any chip to load the inputs and result.

• SBA 7(a): $50k at 7.5% over 5 years
• Equipment: $25k at 9% over 36 months
• Expansion: $250k at 8.5% over 10 years

How to calculate business loan repayments

1. 1
   Enter loan amountTotal principal you intend to borrow.
2. 2
   Set the annual interest rate (APR)Pre-filled with the typical SME rate for your region — override with the actual rate you're being offered.
3. 3
   Set the loan termToggle between months or years, then enter the term length.
4. 4
   Read monthly payment and total costThe calculator shows the fixed monthly payment, total interest paid, and total cost over the full term.
5. 5
   Expand the amortisation scheduleClick to view the month-by-month breakdown of principal vs interest in each payment.