Calculate your monthly business loan repayment. Compare principal-and-interest vs interest-only.
Calculate your monthly business loan repayment, total interest, and payoff timeline. Compare principal-and-interest vs interest-only options for Australian business loans.
01 —INPUTS
Interest-only loans have lower repayments but do not reduce the principal.
02 —RESULTS
Monthly repayment2,027.64
Total interest21,658.37
Total paid (principal + interest)121,658.37
Payoff time5.0 years
Your monthly business loan repayment depends on the loan amount, interest rate, term, and whether you choose principal-and-interest or interest-only repayments. Interest-only loans give you lower monthly payments during the interest-only period but mean you still owe the full principal at the end.
For a complete picture of your borrowing capacity, use the business loan borrowing power calculator to see how much you can borrow based on your monthly budget.
Common questions
What is the difference between secured and unsecured business loans?
Secured business loans require collateral (property, equipment, or inventory) and typically offer lower interest rates. Unsecured loans do not require collateral but have higher rates and stricter eligibility criteria. Most Australian lenders offer both options depending on your business profile and borrowing amount.
How do interest-only periods work for business loans?
During an interest-only period (typically 1–5 years), you only pay the interest on the loan without reducing the principal. This lowers your monthly repayment but means you do not build equity in the asset. When the interest-only period ends, repayments increase as principal repayments begin. Interest-only loans are common for commercial property and asset finance.
What are typical business loan interest rates in Australia?
As of 2026, secured business loan rates typically range from 6% to 12% p.a. depending on the lender, security, and your business's credit profile. Unsecured rates range from 9% to 20%+. Equipment finance and commercial property loans tend to be at the lower end, while working capital and cash flow loans are at the higher end.