How this refinance comparison works
The model treats the balance you owe today as the principal for both loans. It assumes equal monthly principal-and-interest payments, a fixed nominal annual rate divided by 12, and no fees added to either loan. You can enter different terms to see the trade-off between monthly cash flow and total interest.
UK business refinance tools commonly ask for the outstanding balance, current rate, payment period and switching costs. Use the rate and balance from your latest statement and a written offer, not a headline rate. This page compares arithmetic only; it does not assess a lender or tell you whether you qualify.
Worked example
For a £500,000 balance, compare 8% over 120 months with a new 7% loan over the same 120 months, and enter £8,000 of switching costs. The estimated current payment is £6,066.38 a month and the new payment is £5,805.42, a £260.96 monthly difference.
Estimated interest is £227,965.57 on the current schedule and £196,650.88 on the proposed schedule. The £31,314.69 interest difference becomes £23,314.69 after £8,000 of entered costs. At £260.96 lower monthly payments, the entered costs are recovered after 31 months. These are illustrative figures, not a rate or offer.
Costs, term changes and limits
Add the total costs you expect to pay upfront, such as an early repayment charge, lender arrangement fee, valuation and legal costs. The calculator does not estimate a break charge or set a market rate. Ask the current lender for a settlement figure and the new lender for a complete written illustration.
A longer replacement term can reduce the monthly payment while increasing lifetime interest. Review both results. The break-even estimate uses monthly payment savings while both schedules are active; it does not include tax, variable rates, interest-only periods, cash-out, multiple debts, fees financed into the loan or a lender affordability test.
Use a matching business finance calculator
For a standard business loan repayment estimate, use the business loan calculator. For a commercial property mortgage scenario, use the commercial mortgage calculator and check the lender's separate income and security tests.
Inputs for the UK commercial loan refinance calculator
Loan payoff balance today
Use the amount currently needed to clear the loan. It is the same starting principal for both schedules.
Current fixed annual rate
Enter the nominal annual rate currently charged. This estimate does not model a variable rate or an APR that includes fees.
Current term remaining
Months left under the current repayment schedule. The loan is assumed to amortise fully over this period.
New quoted fixed annual rate
Enter the nominal annual rate from a written offer. Do not use a promotional or variable rate.
New loan term
Months over which the replacement balance is repaid. A longer term may lower payments but raise total interest.
Estimated switching costs
Add quoted early repayment charges, arrangement, valuation and legal costs paid upfront. Do not include a cost twice.
CALCULATOR QUESTIONS
Commercial loan refinance calculator UK questions
Does this calculator decide whether I should refinance?
No. It compares the payment and interest assumptions you enter. Lender criteria, security, business cash flow and the final settlement figure need separate review.
Does it include an early repayment charge?
Enter the charge in estimated switching costs if your lender has quoted one. The calculator does not estimate it.
Can I compare a longer new term?
Yes. Enter the proposed months. A lower payment can come with more lifetime interest, so compare both outputs rather than the monthly amount alone.
Does it model interest-only or variable-rate loans?
No. It models fixed-rate loans with equal monthly principal-and-interest repayments. Use an interest-only calculator for an interest-only facility.