Free calculator
Business loan repayment calculator
Work out the monthly payment, total interest, and repayment schedule for a working-capital loan, KUR, or lease. Works for flat and effective interest, with the equivalent rate so offers are easy to compare.
- Loan amount
- –
- Total interest
- –
- Total repaid
- –
Repayment schedule
| Month | Principal | Interest | Balance |
|---|
Excludes provision, admin, and insurance fees. Bank figures may differ slightly due to rounding.
Results are estimates. Provision, admin, and insurance fees, and how the bank rounds, can change the figures.
How it is calculated
Flat vs effective interest, don't mix them up.
In this article
Flat interest
Flat interest is charged on the original amount every month, even as the balance falls. Payment = principal ÷ term + principal × yearly rate ÷ 12. The rate looks low, but the real cost is higher.
Effective interest (annuity)
Effective interest is charged on the remaining balance. With an annuity, the payment is the same every month: early payments are mostly interest, later ones mostly principal. Payment = P × i ÷ (1 − (1 + i)−n), with i the monthly rate and n the number of months.
Comparing offers
A 6% flat rate is roughly an 11% effective rate over 12 months. Compare offers in the same terms; the calculator shows the equivalent rate.
| IDR 12,000,000 over 12 months | Payment | Total interest |
|---|---|---|
| 6% flat a year | IDR 1,060,000 | IDR 720,000 |
| 12% effective a year | IDR 1,066,186 | IDR 794,232 |
FAQ
Questions about loan repayments
Which is cheaper, flat or effective?
You can't tell from the rate alone. Convert to the same terms first; a flat rate is almost always equivalent to a much higher effective rate.
What payment is safe for a business?
Make sure you can still pay in a slow month. The cash runway calculator shows how many months your cash lasts after the payments.
Are provision fees included?
No. Subtract provision and admin fees from the money you actually receive to see the real cost of the loan.
Repayments are safe when cash flow is clear.
Tumra records money in and out from your transactions, with a cash flow report. Try it free for 30 days.