Business loan EMI calculator
Free, no sign-up, runs in your browser.
A business loan is priced on the business rather than the borrower, which makes the rate band wide and the paperwork heavy. The interest is normally a deductible expense, which lowers the real cost meaningfully — often by a third for a profitable business — and changes the arithmetic of whether to borrow at all.
What this product looks like
| Typical rate | 10% – 24% |
|---|---|
| Typical term | 1–10 years |
| Maximum loan-to-value | Not applicable |
| Prepayment charge | About 3% of the amount prepaid |
| Interest usually deductible | Usually |
A worked example
A $250,000 Business loan at a typical 15% over 5 years:
| Monthly instalment | $5,947 |
|---|---|
| Total interest | $106,849 |
| Total repaid | $356,849 |
| Income needed | $11,895 |
What to watch
Because the interest is deductible, the effective rate is well below the headline for a profitable business. The prepayment tab accounts for this: at a thirty per cent tax rate a 15% loan costs considerably less than it appears, which also raises the bar an investment has to clear to beat repaying it.
Questions
What rate will I pay on a business loan?
Typically 10% to 24% unsecured, depending on trading history, turnover and whether there is a personal guarantee. Secured against property it falls substantially.
Is business loan interest tax-deductible?
Interest on borrowing for business purposes is normally a deductible expense, which lowers the real cost by your marginal rate. The prepayment tab shows the after-relief figure alongside the headline.
Should the business borrow or use its own cash?
Compare the after-tax cost of the loan against the return the cash would otherwise earn — including the value of simply having a buffer. The prepayment tab does the first half of that comparison for you.
Rate bands and lending rules on this page were last reviewed on 2026-10-23 and are indicative, not offers. The arithmetic is produced by the same code the calculator runs. Confirm the terms with your own lender before committing; nothing here is financial advice.