APR calculator for a business loan offer
Got an offer that shows a monthly repayment but no APR? Enter the loan amount, the monthly repayment, the number of repayments and any fee taken from the loan, and see the equivalent APR and the total cost.
APR (effective, equivalent)
21.38%
- Nominal annual rate (monthly × 12)
- 19.53%
- Amount you actually receive
- €20,000.00
- Total repayable
- €24,319.92
- Total cost (interest and fees)
- €4,319.92
Fees taken from the loan count as a cost, so they raise the APR. Fees paid separately are not included: add them to the fee box to see their effect.
Check eligibility for this amountIllustrative only. Actual rates, fees and terms depend on your circumstances and the lender. This is not an offer of finance.
How this calculator works
The calculator compares what you actually receive (the loan less any upfront fee) with everything you repay, then finds the interest rate that links the two. That rate, shown as an equivalent APR with monthly compounding, includes the fee, so it reflects the true cost of the offer.
For illustration only: €20,000 repaid at €1,013.33 a month over 24 months is about 21.38% APR. If a €1,000 fee is taken from the loan so you only receive €19,000, the same repayments are about 27.98% APR.
Use it to compare offers with different repayments, terms and fees on one figure, alongside the total amount repayable. Fees paid separately, rather than taken from the loan, can be added to the fee box to see their effect.
Business lenders in Ireland do not have to quote an APR (that legal duty comes from consumer credit law), so this is an equivalent APR worked out from equal monthly repayments, for comparison only.
Want to understand the product first? Read our guide to unsecured business loans.
APR calculator for a business loan offer: common questions
How do I calculate the APR on a business loan?
Take the amount you actually receive, after any fees deducted from the loan, and the full schedule of repayments. The APR is the annual rate at which those repayments exactly pay back the amount received. This calculator solves it for equal monthly repayments and shows the effective annual figure.
Why does an upfront fee increase the APR?
Because you pay interest on the full loan but only receive the amount after the fee. On €20,000 at €1,013.33 a month for 24 months, a €1,000 fee lifts the equivalent APR from about 21.38% to about 27.98%.
What is a good APR for a business loan in Ireland?
It depends on the lender, security, your company’s accounts and the term. The Central Bank of Ireland reported an average rate of 5.59% on new SME loans in the second quarter of 2026; unsecured and fast-decision lenders usually charge more. Compare the APR and the total repayable across offers.
Do business lenders have to show an APR?
No. The legal duty to quote an APR comes from consumer credit law, which does not cover loans to limited companies. Regulated lenders must still give small businesses the rate, fees and charges in writing before you sign. This calculator gives you an equivalent APR from those figures.
Why might my APR differ from the lender’s figure?
The lender may count fees differently, use a different repayment timing (weekly or daily), or include charges that are not in the monthly repayment. Ask for the total amount repayable and every fee in writing so you can check the figures here.
What does the error “repayments add up to less” mean?
The monthly repayment × the number of repayments is less than the amount you receive, so the figures cannot describe a loan with interest. Check the repayment amount, the number of months and the fee.
Can Welcome Finance help me compare loan offers?
Yes. We compare offers from our panel of specialist non-bank lenders for Irish limited companies, setting out the rate, fees and total repayable side by side. Welcome Finance is a commercial finance broker, not a lender, and is not regulated by the Central Bank of Ireland.
Check in 60 seconds
Get real figures for your company
Checking involves no credit search and is not recorded on the Central Credit Register. No obligation.
- No credit search, not recorded on the Central Credit Register
- One request, several lenders: we’re a broker, not a lender
- For limited companies registered in Ireland
- No fees for your company: we’re paid commission by the lender
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Questions and answers
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