Business Loan Calculator

Calculate monthly repayments and the true cost of business financing in Nigeria — including BOI, commercial bank, and microfinance loans.

Business Loan Details

Loan Amount

₦

Annual Interest Rate

Loan Term (months)

Monthly Repayment

₦198,799

Total Repayment

₦7,156,769

Total Interest

₦2,156,769

Interest as % of Principal

43.1%

Loan Term

36 months

Extended

Bank Type Comparison & ROI Analysis

Compare loan costs across commercial banks, microfinance, and fintech lenders; check ROI vs interest

Monthly repayment and total interest cost for a ₦5,000,000 loan over 36 months across different lender types

Lender Type	Rate p.a.	Monthly	Total Interest
Commercial Bank	28%	₦206,818	₦2,445,446
Microfinance Bank	36%	₦229,019	₦3,244,683
Fintech Lender	42%	₦246,421	₦3,871,149
Development Finance (BOI)	12%	₦166,072	₦978,576
LAPO/Coop	24%	₦196,164	₦2,061,913

BOI (Bank of Industry) and CBN intervention funds offer the lowest rates but have specific eligibility criteria and longer processing times.

Professional

Amortization Schedule & Working Capital

Full payment schedule, cash flow impact analysis, and debt service coverage ratio

Loan Amount

₦5,000,000

Monthly Payment

₦198,799

Total Paid

₦7,156,769

Total Interest

₦2,156,769

Month	Payment	Principal	Interest	Balance
1	₦198,799	₦94,632	₦104,167	₦4,905,368
2	₦198,799	₦96,604	₦102,195	₦4,808,764
3	₦198,799	₦98,617	₦100,183	₦4,710,147
4	₦198,799	₦100,671	₦98,128	₦4,609,476
5	₦198,799	₦102,768	₦96,031	₦4,506,708
6	₦198,799	₦104,909	₦93,890	₦4,401,798
7	₦198,799	₦107,095	₦91,704	₦4,294,703
8	₦198,799	₦109,326	₦89,473	₦4,185,377
9	₦198,799	₦111,604	₦87,195	₦4,073,773
10	₦198,799	₦113,929	₦84,870	₦3,959,844
11	₦198,799	₦116,302	₦82,497	₦3,843,542
12	₦198,799	₦118,725	₦80,074	₦3,724,817

How to Use This Calculator

Enter your loan amount, the annual interest rate your bank or lender is offering, and the loan term in months. The calculator instantly shows your monthly repayment, total amount repaid, and total interest cost — helping you understand the true cost of business financing before committing.

The Formula

Monthly Payment = P × [r × (1+r)^n] / [(1+r)^n − 1] Where: P = Loan principal r = Monthly rate = Annual rate ÷ 12 ÷ 100 n = Total months Total Repayment = Monthly Payment × n Total Interest = Total Repayment − Principal

Example

SME Working Capital Loan — ₦5M at 25% for 3 Years

Loan Amount₦5,000,000

Annual Rate25%

Term36 months

Monthly Repayment≈ ₦198,000

Total Repayment≈ ₦7,128,000

Total Interest≈ ₦2,128,000 (42.6%)

At 25% p.a., a ₦5M loan costs over ₦2.1M in interest over 3 years. Reducing the term to 24 months cuts interest to ≈₦1.37M but raises monthly payments to ≈₦274,000. Consider whether your business cash flow can support the higher payment.

Nigerian Business Lending Options

Commercial banks (Access, GTB, Zenith, First Bank): 22–30% p.a. — Best rates but require audited accounts, collateral, and often a minimum 2-year trading history.
Development Finance (BOI, DBN, NEXIM): 9–15% p.a. — Government-backed, targeted at manufacturing, export, and agriculture. Highly competitive but limited availability.
Microfinance banks: 24–48% p.a. — More accessible for informal businesses. Require less documentation but charge higher rates.
Fintech business loans (Moniepoint, Brass, Prospa): 30–60% effective APR — Fast disbursement, data-driven approval, but expensive for long-term financing.

FAQ

Most commercial banks require collateral equal to 100–150% of the loan value. Acceptable collateral includes: Certificate of Occupancy (C-of-O) on land/property, vehicle registration papers, fixed deposit (as lien), debentures over business assets, or personal guarantees from directors. Development finance institutions like BOI sometimes accept receivables or equipment as collateral for sector-specific loans.

Bank of Industry (BOI) loans: business must be registered with CAC, minimum 1-year operation, and in eligible sectors (manufacturing, agro-processing, solid minerals). DBN loans are accessed through commercial banks and microfinance banks — approach your bank and ask if they participate in DBN lending. NIRSAL MFB targets agriculture and healthcare. Interest rates range 9–15% p.a., significantly below commercial rates.

Yes. Interest on genuine business loans is a deductible expense for Companies Income Tax (CIT) and Personal Income Tax (PIT) purposes. Keep all loan agreements and bank statements. The deductible amount is the interest portion of your payments, not the principal repayment. This means the effective cost of your loan is reduced by your tax rate (e.g., at 30% CIT, a 25% interest rate effectively costs 17.5% after tax relief).