# Business loan calculator

> Work out the repayments on a business loan, the interest you will pay and the total cost with fees.

Use it in a browser at https://smallbusinessloan.co.nz/tools/business-loan-calculator, or call it through the site's MCP server at https://smallbusinessloan.co.nz/mcp.

## How this calculator works

Enter the loan amount, interest rate, term and how often you'll repay. The calculator works out an even repayment that covers each period's interest and part of the loan, so the loan is paid off by the end of the term. Banks and most lenders that quote an interest rate work out repayments this way.

The total cost includes the establishment fee. Your repayment only changes if the lender adds the fee to the loan.

If a lender quotes a [factor rate](https://smallbusinessloan.co.nz/glossary/factor-rate) instead of an interest rate, use the [true cost calculator](https://smallbusinessloan.co.nz/tools/true-cost) to turn it into a rate you can enter here.

## Common questions

### What is the monthly payment on a $50,000 business loan?

At 12% a year over 3 years, it's $1,660.72 a month, and you pay $9,786 in interest. Over 5 years, it's $1,112.22 a month and $16,733 in interest. Across Pioneer Finance's published range of 9.95% to 22.95%, the 3-year payment is $1,612.19 to $1,934.18 a month.

### What interest rate will I pay on a business loan in New Zealand?

Each lender sets your rate based on your business. Pioneer Finance publishes 9.95% to 22.95% a year, Line Capital's fixed rates start from 16%, and Lending Room, a broker, quotes 8.99% to 29.95%. Banks such as ANZ and ASB publish a base rate and add a margin for each business.

### How much can my business borrow?

That depends on what your business can afford to repay. ScotPac lends up to 125% of your average monthly sales on loans up to $100,000. Banks look at your accounts and the security you can offer. Enter a monthly repayment you can afford, then change the amount until the repayment matches.