Business loan true cost calculator
Turn a factor rate, fee and term into the true annual rate, so you can compare an offer with a bank loan.
True annual rate
37.0% a year
| Weekly repayment (52 payments) | $1,153.85 |
| Total cost of the loan | $10,000 |
| Total repaid | $60,000 |
The same amount from a bank at 12% a year over 12 months would cost about $3,309 in interest.
Paying 37.0% a year? See what other lenders might offer your business.
Share your details and a lender will get in touch to talk about how much your business could borrow and what the costs might be.
How this calculator works
Enter the amount you're borrowing, the factor rate, the term and any establishment fee. The calculator multiplies the amount by the factor rate, adds the fee and splits the total into equal repayments on the schedule you choose.
Next, the calculator finds the annual interest rate that would cost the same on an ordinary loan with those repayments. That's the true annual rate. Banks quote their rates the same way, so you can compare the two directly.
The bank comparison under the result uses 12% a year as a round example. Your bank's actual rate depends on your business and the security you can offer.