How the length is worked out
Each month interest is added to the balance at one twelfth of the yearly rate, and then your payment comes off. The loan is repaid when the balance reaches zero. The number of payments n comes from the balance B, the monthly rate i and the payment M: n = -ln(1 - i × B ÷ M) ÷ ln(1 + i), rounded up. The last payment is smaller than the others because it only clears what is left.
A business loan is not consumer credit, so this calculator uses the nominal rate from your offer, charged monthly, and not an APR. If your payment is no more than the first month's interest, the balance never falls and there is no answer.
Worked example: £250,000 at £2,200 a month
A £250,000 balance at 7% with a payment of £2,200 a month is repaid in 187 payments, which is 15 years and 7 months. The final payment is £2,067.48. With the first payment on 1 December 2026, the last falls on 1 June 2042. You pay £161,267.48 of interest, and £411,267.48 in total.
What an extra payment saves
Adding £200 a month to the payment takes it to £2,400 and clears the loan in 161 payments, which is 13 years and 5 months, with the last payment on 1 April 2040. That saves 2 years and 2 months and £25,223.67 of interest.
Check that your lender takes overpayments and applies them to the balance. Some lenders do not allow them, charge a fee, or use them to lower the later payments instead of shortening the loan, which would change this result.
The payment that clears the loan in a target term
To clear the same £250,000 in 10 years, the payment has to be £2,902.71 a month, which is £702.71 more than £2,200. Over those 10 years you would pay £98,325.44 of interest and £348,325.44 in total. If your payment is already above the one needed, the calculator shows by how much. At £3,500 a month the loan clears in 93 payments, and your payment is £597.29 above the £2,902.71 needed for 10 years.
What this calculator leaves out
This is a planning calculator for a fixed rate and a level monthly payment. It does not model a variable rate, a balloon payment, an interest-only period, early repayment charges or fees. A fee paid separately does not change the number of payments, but it does add to what the loan costs you.
To see the payoff with a settlement date and early repayment charge, use the business loan payoff calculator .
To work out the payment and cost from the loan terms, use the business loan calculator .
Use the right country page
This page uses UK terms, pounds and UK date format. The country choices above the inputs open separate local pages. Choosing United States opens the US commercial loan length calculator, in dollars and with US wording. The inputs reset and amounts are not converted.
Inputs for the UK commercial loan length calculator
Loan balance
The amount owed now, or the amount you are borrowing.
Interest rate (nominal, not APR)
The yearly rate on the loan, charged monthly at one twelfth.
Monthly payment
What you pay each month toward the loan, before any extra.
Extra payment each month
An overpayment added to every monthly payment. Enter zero for none.
Target term
The time you want the loan gone in, in whole months. We find the monthly payment that does it.
First payment date
When the next payment is due. We date the last one from it.
CALCULATOR QUESTIONS
UK commercial loan length calculator questions
How long will it take to repay my commercial loan?
Enter the balance, the rate and your monthly payment. £250,000 at 7% with £2,200 a month takes 187 payments, 15 years and 7 months.
How do I work out the loan term from the payment?
Use n = -ln(1 - i × B ÷ M) ÷ ln(1 + i), where B is the balance, i the monthly rate and M the payment, and round up. The calculator does this for you.
What payment do I need to repay a loan in 10 years?
For £250,000 at 7%, £2,902.71 a month clears the loan in 10 years. Change the target term to see the payment for any other length.
How much do extra payments save?
An extra £200 a month on that loan saves 2 years and 2 months and £25,223.67 of interest. Check your lender allows overpayments and how it applies them.
Why does it say my payment is too low?
A payment that does not cover the interest for a month never reduces the balance. At 7% on £250,000 the first month's interest is £1,458.33, so the payment must be higher.
Are fees included?
No. A fee paid on its own does not change how many payments you make, so it is left out of the length. It still adds to the cost, so allow for it when comparing loans.
What happens when I change country?
The United States option opens the separate US commercial loan length calculator, in dollars. Your inputs are reset rather than converted.