Loan Repayment Calculator.
Monthly payment and the true total interest on any loan — before you sign for it.
Standard repayment (amortising) loan arithmetic: equal monthly payments covering interest first, capital second. The figure lenders quote is the monthly payment; the figure that matters is the total interest — both are here. For business borrowing, interest is generally a deductible expense — Everything runs in your browser — your figures never leave it. Estimates are general information, not advice: ask us about your own position.
Before you sign
The monthly figure is the bait; the total interest is the price.
Lenders quote the monthly payment because the monthly payment always sounds manageable. The number that should make the decision is the total interest — the actual price of the money — and the way term length moves it. Stretch £25,000 from three years to seven and the monthly payment drops beautifully while the total interest roughly doubles. This calculator shows both, from nothing more than amount, rate and term, using the same amortisation arithmetic the lender uses.
For businesses, two footnotes worth money: interest on genuine business borrowing is generally deductible against profits, so the after-tax cost is lower than the headline — and the structure of the borrowing (loan versus overdraft versus asset finance versus director's loan) changes both the tax and the risk. Before signing a personal guarantee on any of it, it is worth an hour with someone on your side of the table.
Common questions.
How is the monthly payment calculated?
Standard amortisation: a fixed monthly amount set so that interest on the reducing balance is covered and the loan reaches zero exactly at the end of the term. Early payments are mostly interest, later ones mostly capital — which is why settling early saves real money and why the first year's statements look so unrewarding.
Is loan interest tax-deductible for my business?
Interest on borrowing for genuine business purposes is generally deductible against profits — for companies under the loan-relationship rules, for sole traders as a business expense. Capital repayments never are. Mixed-purpose borrowing needs apportioning, and director's loans have their own rules — worth checking before you structure it.
Should I take a longer term for the lower payment?
Only with your eyes open: the longer term buys monthly breathing room at the cost of substantially more total interest. Run both terms through this calculator and compare the total interest lines — then decide whether the cash-flow relief is worth the difference, rather than discovering it later.
Keep going.
Break-Even Calculator
The repayment is a new fixed cost — see what it does to break-even.
Open →Business advisory
Raising finance, comparing offers, and the guarantee small print — before you sign.
Open →Corporation Tax Calculator
Deductible interest lowers taxable profit — see the after-tax picture.
Open →Prefer a human with the numbers?
Bringing us the term sheet before you sign costs one conversation — and has talked more than one client out of an expensive mistake.