Business Loan Calculator - How Much Will You Pay? | Finder NZ

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Business loan calculator

Work out which loan is best to apply for with this business loan calculator.

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If you’re looking to start a new business or purchase 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 pay and when you can repay it.

Read on to find out how the business loan calculator works and how you can use it.[id=”calculator”]

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 one you want to apply for. You can also just put in the details of one loan to see how much payments are.

Once you’ve put in the details, the calculator shows you the amount of the fixed monthly repayments you need to make, as well the total repayments you’ll make over the life of the loan. If you’re comparing two loans, it shows you which one may be the better option.

How to you use the calculator

To work out how much your business loan will cost, 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 excessive, then you can reduce the amount on the commercial loan calculator to see how much you could save.
  • Bank name. Enter the name of two lenders you’re considering borrowing from to easily distinguish between them.
  • Fixed-rate. The annual rate the bank charges for the loan.
  • Fixed period. How long this fixed-rate stays in place.
  • Ongoing rate. If your loan has a rate that comes into effect at a later date (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 need to add them here along with the frequency you pay them.
  • Discharge fee. If the bank charges a discharge fee, for exiting the loan early, you need to enter 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 costs; 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 can keep money in your business for longer, which can help cash flow and can save your business money.
  • 2. Reduce your loan term. By decreasing the period you borrow the loan amount for, you may increase your repayments but you could save a considerable amount of money.
  • 3. Compare your loan options. The best way to save money on a loan is to compare your options and find the best deal for you. When you’re comparing, you should take into account the upfront and ongoing fees of the loan plus 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 often. If you find you need to adjust your repayments, due to cash flow issues, you can use the business loan calculator to see what interest-only repayments may cost you.

What to remember when looking for a business loan

  • Advertised interest rates can differ from what you’ll end up paying due to your individual circumstances – financial position, credit score, purpose of the loan
  • You may have to pay a loan approval fee of around 1% of the loan amount; this is usually added to the loan
  • Approaching lenders directly is the only way to compare interest rates for your particular business

Find the right business loan

Name Product Interest Rate (p.a.) Min. Loan Amount Max. Loan Amount Loan Term Monthly Service Fee Application Fee
Simplify Commercial Vehicle Loan
6.50% - 14.5%
$5,000
$500,000
1 to 5 years
$0
$100 - $500, depending on loan amount, lender and term
Eligibility: Must be 18+, a New Zealand resident or permanent citizen and have an income of at least $500 per month.
Secured vehicle finance from $5,000 to $500,000.
Harmoney Business Loan
6.99% - 24.69%
$2,000
$70,000
3 or 5 years
$0
$200-$450 depending on loan size
Eligibility: Be a NZ resident/citizen and have a good credit score.
Apply for an unsecured business loan up to $70,000 with no early repayment fees.
Lending Crowd Business Loan
5.28% - 20.26%
$2,000
$200,000
2, 3 or 5 years
$0
$200 - $1,450 depending on your borrowed loan amount
Eligibility: Full ownership of your business (with your spouse), over 18 months in business, earn annual sales over $80,000.
Secured and unsecured loans up to $200,000. 100% online with no paperwork or early repayment fees.
Prospa Business Loan
13.9% - 29.9%
$5,000
$300,000
3 months to 2 years
$0
2.5% of loan amount
Special offer: No repayments on business loans for the first 8 weeks. Offer ends 31 March 2021. Ts&Cs apply.
Eligibility: Be 18+, be a New Zealand citizen or permanent resident, own a business with a valid NZBN.
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