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Use this unsecured business loan calculator to model your monthly repayment, total repayment and the total cost of credit on a UK unsecured business loan. Adjust the loan amount, interest rate and term in months to see what an unsecured business loan would cost your SME before you formally apply.
Get a real quote →*Assumes a fixed‑rate, equal‑instalment unsecured business loan. Actual offers will vary by lender, sector, credit profile and any director‑PG arrangements.
A UK unsecured business loan is priced as a normal amortising loan: a principal plus interest, paid back in equal instalments over a fixed term. Unlike a merchant cash advance (which is priced using a fixed factor rate), the cost of an unsecured business loan reduces if you settle early because each repayment includes both interest and capital.
This calculator uses the standard amortising loan formula M = P × r / (1 − (1 + r)−n), where P is the loan amount, r the monthly interest rate (APR ÷ 12), and n the number of monthly payments.
Total repayment is the monthly figure multiplied by the term. Cost of credit is total repayment minus your original loan amount — the “real money” cost of borrowing before any arrangement, broker or early‑settlement fees.
Most UK unsecured business loan lenders charge an arrangement (or completion) fee of 1–5% of the loan amount. Some deduct it from the advance, others add it to the loan balance — either way, it adds to the total cost of finance you should compare lender to lender.
The headline rate is normally quoted as APR (Annual Percentage Rate). Once arrangement fees, broker fees and early‑settlement clauses are included, the true APR can be a few percentage points higher. Always compare offers on total cost of finance, not just the headline rate.
It’s an indicative model only. Real UK unsecured business loan offers depend on your trading history, turnover, credit profile, lender and term. For a real‑world quote, complete our short enquiry form.
The calculator uses the standard amortising loan formula. Each monthly payment is part interest, part capital — with the interest portion falling each month as the balance reduces.
Most UK lenders allow early settlement, but check for early settlement charges — many lenders charge a small percentage of the outstanding balance. Where allowed, overpayment lowers your total interest cost.
Strong‑credit UK SMEs see ~6–9% APR. Most SMEs see 9–15% APR. Newer or higher‑risk businesses often see 15–25% APR. Read our rates & APR guide for full benchmarks.
No — a personal guarantee is a contractual feature of most UK unsecured loans, but it doesn’t affect monthly cost calculations. See our dedicated guide on unsecured loans without a personal guarantee.
Shorter terms cost less in total interest but raise the monthly payment. Longer terms ease cashflow but cost more overall. Most UK SMEs balance affordability against total cost — aim for the shortest term you can comfortably repay.
Every page below draws on the same UK lender panel — pick the guide closest to your situation and the same options apply.
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