What is a business loan calculator?
Our commercial loan calculator is a simple tool that helps you estimate the cost of borrowing for your business. By entering a few details, including the loan amount, loan term, and the status of your credit profile, the calculator gives you an instant overview of what your monthly repayments could look like.
Our calculator doesn’t affect your credit score and is completely free to use. The results are only estimates, but they can give you an idea of what your borrowing could cost before you get quotes.
How does our loan calculator work?
To get an indication of how much a business loan could cost, you just need to enter:
- The loan amount: This is the amount of money you want to borrow for your business, from between £10,000 and £500,000
- Over how long: This is the loan term and is how long you want to repay the loan – between one and six years
- Your credit profile: This is an indication of the status of your credit profile, rated from excellent to very poor
We estimate your monthly repayments using your loan amount, term, and credit profile.
Rather than showing a single figure, we show you a repayment range, as interest rates can vary depending on your exact credit score and the type of lender most likely to approve your application. You’ll see:
- A monthly repayment range: This will show a lower and higher end of estimated monthly repayments
- Completion fee: This is an illustration of the completion fee you could be charged for the loan amount and term selected
- Total interest: This is a breakdown of the estimated total interest you could pay on the loan
- Total amount repayable: This illustrates the total cost of the loan, combining the loan amount, completion fee and interest.
This helps you quickly understand what the loan might cost and what’s affordable for your business. It’s important to remember that our business loan calculator is for illustration purposes only.
When you apply for a quote with Aurora Capital, our experts will calculate the rate you may be offered based on your specific individual circumstances.
How to work out your loan amount
Before using the calculator, it’s important to think about how much funding you actually need. Start by considering the specific purpose of the loan, whether it’s to buy equipment, support growth, manage cash flow, or cover a short-term gap.
Then, factor in all related costs such as VAT, delivery, or installation. It’s often better to borrow slightly more than you need to make sure you’re covered. However, try to keep the loan amount as low as possible to avoid paying more in interest than you need to.
You can use our business loan repayment calculator to test different amounts to see how they affect your monthly costs. Keep in mind that lenders will assess your ability to repay, so your loan amount needs to be affordable.
How to work out your loan term
Choosing the right loan term is about balancing affordability with total cost. A shorter term usually means higher monthly repayments but less interest overall.
A longer term spreads repayments out and keeps costs manageable each month, but increases the total amount you’ll repay.
Think about how quickly the loan will deliver value to your business. For example, a loan to buy equipment might be matched to the asset’s useful life, while a short-term cash flow loan may only be needed for a few months.
Our calculator lets you test different terms so you can see how they affect repayments. It will show you an illustration of your monthly repayments and the potential total cost of the loan, so you can find a balance between the two.
Why use a business loan calculator?
A business loan calculator can be helpful when you’re in the early stages of exploring finance and want a clearer idea of what your options might look like. It’s ideal if you’re:
- Comparing different loan terms to work out what fits your monthly budget
- Trying to understand the affordability of a larger investment
- Weighing up whether to borrow now or wait until cash flow improves
- Planning for a future purchase or seasonal expense
- Running through different scenarios before applying for a loan
A calculator helps you compare different borrowing amounts and repayment periods to help make an informed decision.
It’s a useful tool if you’re not quite ready to get a quote but want to explore the possibilities on your own first.
Business loan calculator FAQs
How accurate is your business loan calculator?
Our loan repayment calculator is designed to provide a helpful illustration of repayments based on the information you provide.
It won’t give you precise figures, but it can provide a realistic range of potential repayments to help you make an informed decision. The final cost of a loan will be determined by the lender’s offer, including their interest rate and fees.
To get a free, obligation quote that won’t affect your credit score, compare funding options with Aurora Capital today.
Does using a calculator affect my credit score?
Using our calculator will not affect your credit score. It’s a free tool that gives you an estimate without running a credit check or leaving any mark on your credit report. You can use it as often as you like to explore different scenarios.
You can even apply and compare funding options without impacting your credit score. We can compare our panel of lenders and match you with the most suitable finance option.
How much can I borrow?
How much your business can borrow will depend on several different factors, including:
- Your revenue and profit
- Your debts and commitments
- Your business credit score
- The type of business finance you want
Depending on the business loan you choose, we can work with businesses looking to borrow between £10,000 and £2 million.
How much will a business loan cost?
How much it will cost to get a business loan is determined by a number of factors, including:
- The annual percentage rate (APR) you are charged
- Fees and charges
- Your credit score
- The loan amount
- The term length
Using our business loan calculator can help give you a clear illustration of how much a loan could potentially cost.
