Business Loan Overpaying Calculator
Enter your current loan details and see how your rate compares to the market. Takes about 30 seconds.
By LoanLens · Updated February 2026
How this calculator works
We take your outstanding balance, current APR, and remaining term, then calculate your monthly repayment using the standard amortisation formula. We compare this against the typical market rate for your loan type — sourced from Bank of England data and our own lender research.
The “market rate” we use is the midpoint of what we consider a good rate for your loan type — deliberately conservative. We use the “good” rate, not the best rate, to avoid overpromising.
A positive result doesn't mean you should immediately switch lenders. Exit penalties, arrangement fees, and the hassle of refinancing all need factoring in. Use our Exit Penalty Calculator to work out whether switching actually saves money after costs.
Typical market rates
These are the comparison rates our calculator uses, reviewed quarterly.
| Loan type | Typical range | Good rate |
|---|---|---|
| Unsecured term loan | 8–18% | 10–12% |
| Secured term loan | 6–12% | 7–8% |
| Asset finance / HP | 5–15% | 7–10% |
| Bounce Back Loan | 2.5% | 2.5% |
| CBILS | 4–12% | 6–8% |
| Merchant cash advance | 20–100% | 20–30% |
Last updated February 2026. Sources: Bank of England effective interest rate tables, British Business Bank Small Business Finance Markets report.
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Frequently asked questions
What rate should I be paying on a business loan?
It depends on your loan type, borrowing amount, and credit profile. For unsecured business loans in 2026, anything below 12% APR is generally competitive. Secured loans can be significantly cheaper — under 8% for strong applicants.
Is this calculator giving me financial advice?
No. LoanLens provides information and educational tools. We are not authorised by the FCA and do not provide regulated financial advice. Always speak to a qualified adviser before making decisions.
Can I switch lenders if I'm overpaying?
Potentially, but check for early repayment charges first. Many business loans have exit penalties — typically 1–5% of the balance. Use our Exit Penalty Calculator to work out whether switching saves money after these costs.
Do you store my data?
No. All calculations happen in your browser. We don't transmit, store, or have access to any numbers you enter.
LoanLens provides information and educational tools, not regulated financial advice. We are not authorised or regulated by the Financial Conduct Authority. Calculator results are estimates based on the information you provide and typical market data. Always seek independent professional advice before making financial decisions.
How do you know if you're overpaying on a business loan?
The UK business lending market is not transparent. Unlike mortgages, there is no standardised public index of business loan rates — lenders price individually based on your credit profile, sector, loan size, and relationship history. This means many businesses continue paying rates that were competitive when they first borrowed but are no longer market-rate today.
As a rough benchmark: unsecured business term loans for creditworthy SMEs currently attract rates of 7–12% APR from mainstream lenders, and 12–20% from alternative lenders. Asset-backed and secured loans can go lower. If your current rate sits significantly above these ranges — especially if you've improved your trading record or reduced your debt since you first borrowed — you may be a strong candidate for refinancing.
How this calculator works
Enter your current outstanding balance, interest rate, and remaining term. The calculator models your remaining repayment schedule under your current rate and compares it against the same loan at a representative market rate for your loan type.
The difference in total interest paid over the remaining term is your potential saving — before accounting for any exit costs. The results assume the new loan has the same remaining term as your current loan. If your potential saving is significant, the next step is to check your exit penalty using our Exit Penalty Calculator to see whether switching makes financial sense after those costs.
What rate should you be paying?
The market rate benchmark used in this calculator is based on publicly available rate data from major UK lenders, updated quarterly. The "typical market rate" shown is a reasonable rate for a creditworthy UK SME at the current time — it is not a rate guarantee or a lender quote. Your actual achievable rate will depend on your specific circumstances, credit profile, and which lenders you approach.