How this comparison works
Business lenders do not all quote the same way. One offer shows an annual rate and a monthly fee, another quotes a fixed amount to repay, a third deducts a large establishment fee from the money it sends you. Lined up next to each other, they are almost impossible to compare by eye. This calculator strips every offer back to the same handful of numbers, using only figures you can find in the paperwork.
For each offer it works out the cash in hand (the loan amount less any fees taken out before you receive the money), the total cost of finance (everything you repay plus deducted fees, minus the loan amount), the cost for every dollar you actually receive, the average cost per month you hold the money, and the size of each repayment. Those five numbers tell you far more than a headline rate ever could.
Reading the results
- Cost per dollar received is the fairest single comparison when the terms are similar. If one offer costs 22 cents for each dollar in your account and another costs 31 cents, the first is cheaper for the same use of money.
- Cost per month matters when the terms differ. A longer loan often costs more in total but less per month, so look at both.
- Repayment size is about survival rather than price. A daily or weekly debit that your account cannot comfortably carry is a bad deal at any cost. Check it against your repayment coverage.
What the numbers cannot tell you
Price is only half of a loan review. Two offers with the same cost can carry very different risks: one might take a charge over all your business assets, require a personal guarantee from every director, or lock you in with a payout fee that wipes out any saving from repaying early. Before you choose, work through our guide to reviewing a business loan offer and the list of red flags.
If you do not have offers yet and want to know what might be available for your business, you can make one enquiry. There is no credit check when you first enquire, a real person looks at your situation and your details are not passed around a list of lenders. When the quotes arrive, come back here and compare them properly. And if the result surprises you, ask us about it; a second look costs nothing.
Frequently asked questions
Why compare the total repayable instead of the rate?
Business loans are quoted in different ways: some with an annual rate, some with a factor or flat fee, some with large upfront fees. The total you repay, less the cash you actually receive, is the one number every offer has and it cannot be dressed up. Comparing that cost against the cash in hand and the term gives a fair picture.
Where do I find the total repayable on an offer?
Most written offers state the repayment amount and the number of repayments, or a total amount payable. Multiply the instalment by the number of instalments if the total is not shown, and ask the lender to confirm it in writing along with every fee.
Should upfront fees be included if they are added to the loan?
If a fee is deducted from the money you receive, enter it as an upfront fee so the calculator shows the true cash in hand. If the fee is capitalised into the loan balance, it will already be inside the total repayable, so enter zero to avoid counting it twice.
Is the cheapest offer always the best one?
Not always. A slightly dearer offer may allow early payout without penalty, avoid a personal guarantee or take less security. Use the numbers to see the cost difference, then weigh it against the terms in our guide to reviewing a loan offer.
Does this calculator store my numbers?
No. Everything runs in your browser and nothing you type is saved or sent anywhere.
We are an information site, so we do not rank lenders, publish interest rates or accept payment to feature a product. Every page is written and checked by our editorial team against official sources. Read our editorial policy and how we are funded.
