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Business Loan Calculator

Calculator

Calculate repayments on Australian business loans including term loans, lines of credit, and equipment finance. Compare secured vs unsecured rates.

Free to useNo data storedAI insightsUpdated: February 2026

Business loans come in many forms — secured term loans, unsecured facilities, lines of credit, equipment finance, and commercial property loans. Each has different rates, terms, and requirements. Australian business loan rates currently range from 6% (secured, prime borrower) to 15%+ (unsecured, startup). This calculator helps you compare repayments across different loan structures and find the most cost-effective option for your business.

Enter Your Details

Enter Your Details

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How much you need to borrow

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Business loan rates typically range from 6-15% depending on security

Business loans typically range from 1-7 years

Secured loans offer lower rates; unsecured is faster but more expensive

More frequent payments reduce total interest slightly

Newer businesses may face higher rates or stricter requirements

Real-World Examples

Secured Business Expansion Loan

A café owner borrows $200,000 at 7.5% over 5 years (secured against property) to open a second location.

Monthly repayment: $4,010. Total interest: $40,600. Total cost: $240,600. The interest is 100% tax deductible, so the after-tax cost at a 30% company rate is $28,420 in interest.

Unsecured Working Capital

An e-commerce business needs $50,000 for inventory at 12% over 2 years (unsecured).

Monthly repayment: $2,354. Total interest: $6,496. Total cost: $56,496. While the rate is higher than secured, the fast approval (2-3 days) and no asset requirement makes this suitable for short-term inventory funding.

Frequently Asked Questions

Glossary

Secured Business Loan
A loan backed by an asset (property, equipment, or inventory) as collateral. Offers lower interest rates but the lender can seize the asset if you default.
Unsecured Business Loan
A loan without collateral. Higher interest rates but faster approval and no risk to specific assets. Often offered by fintech lenders.
Line of Credit
A flexible arrangement where you can borrow up to a set limit and only pay interest on the amount drawn. Ideal for managing variable cash flow.
SME Guarantee Scheme
An Australian Government scheme where the government guarantees up to 50% of new unsecured loans to SMEs, allowing lenders to offer better terms.

Disclaimer: This calculator provides estimates only and should not be relied upon for financial decisions. Interest rates, fees, and policies change frequently. Always verify information with lenders directly. This is general information, not personal financial advice. Consider seeking advice from a licensed mortgage broker or financial advisor.

Last updated: February 2026

How to Use
  1. Enter the loan amount you need.
  2. Input the interest rate (or use the default for your loan type).
  3. Set the loan term in years.
  4. Select the type of business loan.
  5. Choose your preferred repayment frequency.
  6. Get repayment amounts, total interest, and comparison insights.
Key Information
  • Secured business loans (backed by property or assets) offer rates from 6-9%.
  • Unsecured business loans typically range from 8-15% but have faster approval (sometimes same-day).
  • Interest on business loans is generally tax-deductible as a business expense.
  • Many lenders require 2+ years of business financials (BAS, tax returns, profit & loss).
Pro Tips
  • Shop around — rates vary significantly between big banks, online lenders, and specialist business lenders.
  • If you have property to secure the loan, always compare a secured business loan vs an unsecured one — the rate difference can save thousands.
  • Consider whether a line of credit (pay interest only on what you draw) is more appropriate than a term loan for variable cash flow needs.
  • Look into government-backed loans: the SME Guarantee Scheme allows some lenders to offer unsecured loans up to $5M at competitive rates.
Avoid These Mistakes
  • Only looking at the interest rate — comparison rates, fees (application, monthly, early exit), and total cost matter more.
  • Borrowing too much or too little — borrow what you need plus a 10-20% buffer for unexpected costs.
  • Not having your financials in order — lenders want BAS statements, tax returns, profit & loss, and cash flow forecasts.
  • Choosing a term that's too short, creating cash flow pressure — balance between minimising interest and manageable repayments.
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