METHOD & GUIDANCE
How this calculation works
Keep every input on the same time basis—for example, one month or one financial year—and do not mix cash figures with accrual figures. Tool IQ recalculates every output immediately; nothing you enter is saved or sent to us.
How to use the result
Compare offers using total repaid and fees as well as the monthly payment, and test whether repayments remain affordable in a slower-sales case.
Worked example
The opening example amortises a 25,000 fixed-rate loan over 36 monthly payments and adds the stated upfront fee to total borrowing cost.
Common mistakes
- Comparing only monthly payments across different terms.
- Leaving fees out of total cost.
- Using a fixed-rate estimate for a variable-rate facility.
Frequently asked questions
Is the business loan calculator free?
Yes. It requires no account and stores no calculation inputs.
Can I use the answer for a formal filing?
No. It is a planning estimate, not accounting, tax, legal or investment advice. Confirm material decisions with a qualified professional.
Which period should I use?
Keep every input on the same basis—for example, one month or one financial year. Use current figures first, then save a cautious scenario for comparison.
Continue the decision
- ROI Calculator — Compare return, profit and payback at a glance.
- Cash Runway Calculator — Estimate how many months your available cash will last.
Popular small-business decision paths
- Build the next cash-flow forecast
- Measure how quickly invoices become cash
- Calculate UK late-payment interest
Method reviewed 5 August 2026. Figures are illustrative and calculated locally in your browser. Official sources are linked where a rule or obligation affects how the result should be used. Read the Tool IQ calculation standard for our checking process, limitations and corrections policy.