Work out which loan to apply for with this business loan calculator.
If you’re looking at starting a new business or financing operations or purchases in an existing one, chances are you might be trying to decide which business loan is right for you. Using a business loan calculator can help you compare the costs of two loans – interest and fees – and also show you what you'll be paying and when you'll be able to repay it. In short, it can help you make a decision.
Read on to find out how the calculator works and how you can use it.
How does the business loan calculator work?
The business loan calculator allows you to put in the details of two business loans so you can find out which loan you want to apply for. You can also just put in the details of one loan to see how much you will pay for it.
Once you've put in the details, the calculator will show you the repayments you need to make over time and the total repayments you need to make. If you're comparing two loans it will show you which one is the better option.
How do you use the business loan calculator?
To work out how much your business loan will cost you, simply adjust the following fields in the business loan calculator to represent your intended loan:
- Loan term. How long you need to repay the loan. If the repayments are too high you can adjust this after your first calculation.
- Loan amount. This is the amount you intend to borrow. If the monthly repayments are too much then you can reduce this amount on the commercial loan calculator to see how much you could save.
- Bank name. Put in the name of two lenders you're considering borrowing from to easily distinguish them.
- Fixed rate. The annual rate you're charged with the loan.
- Fixed period. How long this fixed rate stays fixed for.
- Ongoing rate. If your loan comes with a rate that comes into effect down the track (following an introductory period) this is where to enter it.
- Upfront fees. Add the establishment fee (if one is charged) here.
- Fees. If the loan comes with ongoing fees you'll need to add them here along with the frequency they're charged.
- Discharge fee. If you're charged a discharge fee for exiting your loan early you'll need to add it here.
How to use the business loan calculator to save you money
The business loan repayment calculator doesn’t only show you how much your business loan will cost you; it can also show you how to reduce the amount you pay. Here are some ways to use the calculator to see if you can save money:
- 1. Reduce repayments. While this doesn’t save you money in the long run, by reducing your repayments you will be able to keep money in your business for longer. This can help cash flow and can save your business money, even if you end up paying more money on your loan.
- 2. Reduce your loan term. By decreasing the amount of time you borrow the loan amount for, you may increase your repayments but you could save a considerable amount.
- 3. Compare your loan options. The best way to save money on a loan is to compare your options and find the best deal. When you’re comparing you should take into account the upfront and ongoing fees of the loan as well as the interest rate.
- 4. Alter your repayments. If you have chosen a monthly repayment frequency, you may find that you can save money on interest by making repayments more frequently. If you find you need to adjust your repayments due to cash flow issues, you can use the commercial loan calculator to see what making interest-only repayments will cost you.
- Borrow up to $250,000
- Same-day turnaround
- Repay early without penalty
100% confidential application
Prospa Business Loan Offer
The Prospa Business Loan allows you to borrow up to $250,000 for your business needs. The loan is available for new or existing business needs and features no upfront fee and no fees for early repayment.
- Interest rate type: Variable
- Application fee: $0
- Minimum loan amount: $5,000
- Maximum loan amount: $250,000
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