Franchise Loan Repayment Calculator
Standard amortising loan. Actual repayments depend on the lender's rate, fees and structure, confirm with the lender or a broker.
Why use this tool?
Most franchisees fund part of their investment with a loan, and the repayment is a fixed monthly cost that eats into cash flow during the critical ramp-up period. Knowing the exact repayment before you borrow tells you whether the business can service the debt and still pay you. This calculator uses the standard amortisation formula lenders use.
Who uses the Franchise Loan Repayment Calculator?
- Prospective franchisees, checking whether projected profit can cover loan repayments.
- Anyone comparing loan offers, seeing how rate and term change the monthly cost and total interest.
- Finance brokers, illustrating repayment scenarios for a client in seconds.
- Existing franchisees, modelling finance for a refit, second van or new site.
How to use it
Estimate your repayment in three steps:
- Enter the loan amount. Add how much you plan to borrow, typically the portion of the total investment you're not funding from savings.
- Add the interest rate and term. Enter the annual interest rate and the loan term in years. Use a realistic business-loan rate, not a home-loan rate.
- Read your repayment. The tool shows the monthly repayment, total interest over the life of the loan, and the total amount you'll repay.
Frequently asked questions
How is a franchise loan repayment calculated?
It uses the standard amortising-loan formula: monthly repayment = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the amount borrowed, r is the monthly interest rate and n is the number of months. This calculator does it for you.
What interest rate do franchise loans charge?
Business loans usually cost more than home loans. RBA lending-rate data show new small-business loans averaged 7.44% a year in July 2026, up from 6.55% in December 2025, and your own rate will depend on security, the lender and the franchise system. Use a rate quoted for your situation for an accurate figure.
How much can I borrow to buy a franchise?
It depends on the lender, your finances and the security you can offer. Each lender sets its own contribution and security requirements, and most expect part of the investment to come from your own funds. Get a figure from a lender or licensed broker and enter it above.
Should the business cover the loan repayment?
Ideally yes, your projected net profit should comfortably cover the repayment with a margin to spare, especially during the first year. If it can't, the loan is too large or the business case is too thin. Compare the repayment here against your ROI calculator result.
Is this loan calculator free?
Yes, free, in-browser and no sign-up. It's an estimate; your actual repayment depends on the lender's rate, fees and terms, so confirm with the lender or a broker.
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