NZ business loan interest cost calculator.
Slide the amount, term, and indicative rate to see total interest paid across the life of the loan. The figure that reveals which deal is actually cheaper.
Last reviewed 27 April 2026
Indicative repayment
Weekly
$537/week
Indicative only. Not a quote or offer of credit. Actual rates, fees, and repayments depend on the business profile and the lender's decision.
Sending to Prospa
Your $100,000 scenario
5 years at 14.00%. Prospa will ask a few quick questions, then provide a firm quote and funding if eligible.
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Indicative only. Why we say this
Why total interest matters
The cost of credit is bigger than the monthly repayment.
The most common framing for borrowing decisions is "what does it cost per month?" because the monthly figure determines the cash-flow impact. The total interest figure tells a different and equally important story: what is the cost of using this lender's money for the life of the loan?
On a $100,000 5-year loan, a 6-percentage-point rate difference (8% vs 14%) translates to roughly $18,000 in total interest. That is the figure most worth comparing when evaluating two offers, because monthly cost can be optically similar while total cost diverges materially.
Term vs rate trade-off
Shorter terms compound the rate savings.
The total interest figure is the cleanest way to evaluate the term-vs-rate trade-off. A 3-year secured loan at 9% vs a 7-year unsecured loan at 16% produce similar monthly costs (roughly $1,400 to $1,500 on $50K), but the 3-year secured option pays roughly $7,250 in total interest while the 7-year unsecured pays roughly $35,000. The 7-year option costs nearly 5x more across the life of the loan.
The trade-off is the monthly capacity. Where cash flow tolerates the higher monthly, the shorter term materially cuts total cost. The interest cost calculator surfaces this clearly.
At a glance
Indicative total interest on a $100,000 NZ business loan.
The figures below show total interest paid across the loan term at the indicative rate shown. Total interest excludes establishment fees and any monthly service fees.
| Term | 8% (secured) | 14% (unsecured mid) | 20% (short-term high) |
|---|---|---|---|
| 2 years | ~$8,500 | ~$15,200 | ~$22,200 |
| 3 years | ~$12,800 | ~$23,200 | ~$33,800 |
| 5 years | ~$21,700 | ~$39,500 | ~$59,000 |
| 7 years | ~$31,200 | ~$57,300 | ~$86,300 |
| 10 years | ~$45,600 | ~$86,000 | ~$131,800 |
FAQ
Interest cost calculator, NZ business questions
What is total interest cost on a NZ business loan?
Total interest cost is the cumulative interest paid across the life of the loan, calculated as the sum of all repayments minus the original principal. On a $100,000 loan at indicative 14% across 5 years, total interest is approximately $39,500. The interest cost is the second figure (alongside the monthly repayment) most worth understanding before signing.
How does the term affect total interest?
A longer term reduces the monthly cost but increases total interest paid because each dollar of principal accrues interest for longer. On the same $100,000 at 14%, total interest across 3 years is around $23,200; across 5 years it is around $39,500; across 7 years it is around $57,300. Doubling the term roughly doubles the interest paid.
How does the rate affect total interest?
On a 5-year, $100,000 loan, total interest at 8% is around $21,700; at 14% it is around $39,500; at 20% it is around $59,000. The rate-to-interest relationship is roughly linear at any single term length: each percentage-point of rate adds roughly $3,000 in total interest on a 5-year, $100,000 loan.
Why is total interest important if monthly cost fits the budget?
Two loans with similar monthly cost can have very different total interest figures. A $100K loan at 12% across 5 years and a $100K loan at 8% across 7 years produce similar monthly costs but the 5-year loan saves roughly $5,000 in total interest. Looking at total interest reveals which option is actually cheaper across the life of the loan.
Can I reduce total interest paid?
The strongest levers are choosing a shorter term where cash flow allows, securing the loan to access lower rates, refinancing if rates drop, and making extra repayments where the contract allows them at no break cost. Each lever compounds; combining a shorter term with a secured rate often saves materially more than either alone.
How do fees affect total cost?
Establishment fees (typically $200 to $1,500 alternative lenders, $500 to $5,000 major banks), monthly service fees ($0 to $40), and any break costs sit on top of the interest figure shown by the calculator. The total cost of credit across the life of the loan is interest plus fees; the calculator handles the interest portion only.
What is the relationship between weekly and total interest?
Weekly repayment versus monthly repayment on the same nominal annual rate produces a slightly lower total interest figure because principal pays down faster. The savings are small on short loans (under 2 years) and material on longer ones (4 to 5 years). On a $100,000 5-year loan at 12%, weekly repayment typically saves around $400 to $700 against monthly.
Are loan repayments tax-deductible?
The interest portion of business loan repayments is generally deductible against business income, subject to the accountant's confirmation, where the loan is used for business purposes. Principal repayments are not deductible. The calculator shows total interest separately to support this distinction; the accountant typically reconciles the deductible portion annually.
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