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Business Loan Calculator: How much can I borrow?

Congratulations! You have decided to take your small business to the next level and are now thinking about funding options to turn your newly set business goals into reality. 

Nowadays there are luckily many flexible business funding options available. But the elephant in the room, the burning question on your mind, is how much can you afford to borrow? 

We know it can be hard to understand how much a loan will actually cost your business and some lenders are certainly more transparent than others when it comes to communicating pricing.

At Lumi, we have fully transparent pricing, no hidden fees, what you see is what you get. To make things even easier for you, we have recently updated our Business Loan Calculator. Check it out here. It is designed to help you effectively calculate your estimated repayments based on either the amount you wish to borrow or the amount you can afford to repay. 

Here’s how the Business Loan Calculator works:

1.You know exactly how much you want to borrow and want to know how much the repayments will be 

If you know the amount you wish to borrow, let’s say you want to purchase new equipment or do some renovations. You already received a quote and calculated how much extra funding you’d need in order to avoid any cash flow problems. Great that you’re so well prepared! 

Now, click on the “Repayments” tab on our Business Loan Calculator, then you can select:

  • The amount you wish to borrow 
  • The length of the loan AKA repayment period 
  • Your preferred annual interest rate

Bear in mind that each of these variables influence each other. Meaning that the loan amount, length of your repayment period and interest rate will determine your estimated repayments provided by the Business Loan Calculator.


For instance, let’s say you know that your business needs approx. $100K for some renovations you’ve got planned. You also would like to pay back the loan over 12 months and are willing to pay a 15% annual interest rate over that year. When you put in those numbers in our Business Loan Calculator, you will receive an estimated weekly or monthly repayment amount. For this specific example it would be an estimated weekly repayment of $2.2K. It also indicates the total interest you will be paying over that 12 month period. It then also shows you the total repayment amount including your principal (the amount you borrow) and interest.

2. You know how much you can afford to repay and want to know how much money you can borrow 

In case you are unsure about how much money you can get but know how much you can afford to repay each week, our handy calculator allows you to calculate an estimated loan amount based on your maximum weekly repayment capacity.

For this calculation, click on the “Affordability” tab on our Business Loan Calculator and you will be able to choose:

  • Desired weekly repayment amount 
  • Preferred repayment period 
  • Range of annual interest rate 

Business Loan Calculator Affordability

Let’s say you crunched the numbers and your business can afford to make weekly repayments of $1,000. You would like to repay the loan over a 12 month period and you’re comfortable with a 15% annual interest rate. Based on that our Business Loan calculator shows that you can get an approximate total loan amount of just over $45K with an estimated total interest of ca. $6.7K meaning that the total repayment amount would be $52K. 

As you can see, we are always very transparent about how we calculate the cost of a business loan. Rest assured that there will be no hidden fees other than what you see as part of your repayment schedule. 

While our Business Loan Calculator gives you a first idea about how much you could afford to borrow, it’s important to remember that these figures are only an estimate. They won’t guarantee a positive loan application outcome and your final repayments might differ depending on your risk profile including your credit history. It also depends on the loan product you choose, whether it’s secured or unsecured etc. All these factors contribute to a lending decision and final repayment schedule. 

At the end of the day Lumi will have to assess your business’s creditworthiness based on your risk profile before a lending decision can be made. But thanks to our proprietary technology and algorithm we can make these assessments super fast. In most cases, provided that you have submitted a complete online business loan application, you will receive a lending decision within a few hours and if approved you can even receive the funds on the same business day. 

Wondering what makes up the cost of a Lumi business loan? 

Check out the pie chart below. It explains the main cost components, whose percentages depend on the loan amount as well as your credit assessment. However, this is a general guide that can help you understand the cost of a business loan. 

Business Loan Calculator What makes up the cost of a business loan











Origination Fee: This is the fee you pay for setting up your loan. 

Principle: The total loan amount you are borrowing. 

Simple Interest Per Annum: The annual interest you are paying on the amount you are borrowing. This can vary mainly depending on your risk profile as well as the loan amount and terms. 

What are the minimum requirements to apply for an online business loan with Lumi?

  • Do you have a valid ABN/ACN? Great! 

  • Have you been operating your business for more than 6 months? If so, you’re one step closer to qualifying. 

  • Does your business have an average monthly turnover of at least $5K? If yes, you might be ready to apply! 

Make sure that you use our handy Business Loan Calculator to find out how much you can afford to borrow. It can provide you with some guidance on a more realistic loan amount. 

Before you apply for a business loan, there are more things you can do to improve your chance of success. Check out the government’s website here to learn about preparing a business plan, checking your finances, and deciding on the best type of loan for your business.

Are you ready to apply for a business loan with Lumi? Head to our website and apply online in less than 5 min!

Busienss Loan Calculator Customer Review











If you have any more questions or would like to discuss your loan application, reach out to our team. You can talk to us via email at support@lumi.com.au or call us on 1300 00 5864.

Your Lumi team

Post Author: Vanessa Muller

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