Estimated repayments are estimates only based on the information you input. They are for illustrative purposes only and are not an offer of finance. The calculator may allow you to select an input (e.g., repayment frequency, loan period) that may not be available for your actual business loan. Estimated repayments do not include fees and charges payable for your business loan and therefore can be higher or lower than the actual figure shown.
This is general information only and does not take your circumstances into account.
Why the early repayments are mostly interest
Interest is charged on what you still owe. At the start you owe the most, so the largest share of each repayment goes to interest and only a small part reduces the balance. As the balance falls the split flips and the principal portion grows. The schedule above shows exactly where that crossover happens on your numbers.
What changes when you repay weekly
Paying weekly or fortnightly reduces the balance more often, so slightly less interest accrues across the term. The effect is real but modest. Some lenders and accounting packages call this table an amortization schedule, which is the same thing written the American way.
Extra repayments hit the tail
An extra payment comes straight off the balance, so every future interest calculation runs on a smaller number. That is why extra repayments early in a loan save far more than the same amount paid near the end. Check whether your facility allows them without a break cost first.
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