Our free Australian business loan calculator helps you estimate repayments for both secured and unsecured business lending. Enter your loan amount, interest rate, and loan term, then choose your repayment frequency (weekly, fortnightly, or monthly), security type, and whether you want a principal and interest or interest-only structure. Results update instantly as you adjust the sliders.
The Additional Payment field lets you model the impact of making extra repayments on top of your scheduled amount — useful for seeing how much interest you can save by paying down the loan faster.
Understanding Business Loan Structures
Principal and Interest (P&I): Each repayment covers both the interest charge and a portion of the loan principal. Your balance reduces with every payment, and you pay less total interest over the loan term compared with interest-only. This is the most common structure for term business loans.
Interest Only (IO): During the IO period, repayments only cover the interest on the outstanding balance — the principal does not reduce. At the end of the IO period, repayments switch to P&I on the remaining balance, which means higher repayments for the remainder of the term. IO structures can improve cash flow in the short term and are commonly used for investment or bridging purposes.
Security type affects the rate and maximum loan size a lender will offer, but does not change the calculation method — it is shown for reference only in this calculator.
Frequently Asked Questions
Business loan amounts in Australia range from as little as $5,000 for short-term unsecured finance up to $5 million or more for residentially secured term loans. The amount you can borrow depends on your business revenue, trading history, credit profile, purpose of the loan, and the type of security offered. Unsecured loans typically top out at $500,000–$1 million, while secured loans can go significantly higher. A business lending specialist can assess your maximum borrowing capacity.
A secured business loan requires you to offer an asset — commonly residential or commercial property — as collateral. This reduces the lender's risk, which typically results in lower interest rates and access to larger loan amounts. An unsecured business loan requires no collateral, making it faster to access but usually at a higher interest rate and with a lower maximum loan amount. Some lenders take a General Security Agreement (GSA) over business assets as a form of partial security.
Business loan interest rates in Australia vary widely depending on the lender, loan type, security, and risk profile of the borrower. Residentially secured business loans from major banks often range from around 7–10% p.a. Unsecured business loans and short-term finance products can range from 10% to over 25% p.a. Rates are assessed on a case-by-case basis. Using this calculator with a range of rates will help you understand the repayment impact at different rate scenarios.
P&I costs less in total interest and reduces your debt over time — best if you want to own the asset outright and minimise interest expense. Interest only keeps repayments lower during the IO period, preserving cash flow — useful when funds are being deployed into growth, or when the loan is for investment purposes and cash flow management is a priority. After the IO period ends, repayments increase significantly, so this must be planned for. Use the IO options above to see the difference for your loan size.
Approval times vary significantly. Some fintech and non-bank lenders can approve and fund small unsecured business loans within 24–48 hours for established businesses with clean credit. Major bank term loans — especially secured ones — typically take 2–4 weeks due to valuation and documentation requirements. Having your financials, BAS statements, and bank statements ready will speed up the process regardless of lender. A broker at Dark Horse Financial can identify the fastest appropriate lender for your situation.
Yes — on a P&I variable or fixed loan that allows extra repayments, paying more than the minimum reduces your outstanding principal faster, which reduces the interest charged in subsequent periods. The total interest saving compounds over the loan term and can be substantial. Use the Additional Payment slider above to model the impact. Note that some fixed-rate business loans cap or charge fees for extra repayments — check your loan contract.
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Disclaimer: The results generated by this calculator are indicative estimates only and are provided for general information purposes. They do not constitute an offer of finance, credit approval, or a formal quote, and do not take into account your personal or business objectives, financial situation, or needs. Calculations do not include establishment fees, ongoing fees, or other charges. Actual repayments, rates, fees, and eligibility will vary by lender and circumstance. You should not make any financial decision based solely on these results. Dark Horse Financial Pty Ltd is a Credit Representative No. 465 325 of Buyers Choice Licencing Pty Ltd ACN 626 172 281 (Australian Credit Licence No. 509484). To approved applicants only.
