Build a franchise funding budget
Your project cost may include the initial franchise fee, premises, equipment, training, stock, professional costs and working capital. The British Franchise Association distinguishes initial costs from ongoing franchise fees, so include only start-up costs being funded in this project total. Royalties and other ongoing costs belong in a separate operating forecast.
Enter your own cash contribution. There is no universal contribution percentage in this calculator: lender requirements and available funds depend on the applicant, franchise and offer. The amount financed is the project cost minus your contribution.
How monthly repayments are estimated
The estimate uses a fixed annual nominal rate divided by 12, then calculates equal monthly principal-and-interest payments over the selected number of whole months. The first payment is assumed one month after borrowing. The model does not include fees, interest-only periods, variable rates, payment holidays or weekly and daily schedules.
The rate input is not APR. APR can include fees and other costs, so compare this estimate with the payment schedule and total cost in a written lender quote.
Worked UK repayment example
For an £80,000 project with no owner cash contribution, the amount financed is £80,000. At an illustrative fixed nominal annual rate of 8% over 7 years, estimated monthly repayments are £1,246.90. The 84 repayments total £104,739.36, including £24,739.36 interest. This example excludes fees and is not a lender offer.
Your contribution is shown as a share of project cost. The default is zero so the calculator does not imply a standard contribution; enter the amount from your own plan or quote.
Costs and lender decisions are separate
Franchise royalties, service or marketing fees may depend on the franchise agreement and are not loan repayments. Include them with rent, payroll, tax and other operating costs when assessing cash flow.
This tool does not predict approval, affordability, franchise performance, security requirements or the terms a lender will offer. Review the franchise agreement, total start-up budget and written finance terms before committing.
Inputs for the UK franchise business loan calculator
Total franchise project cost
Add the franchise fee, set-up costs and working capital included in this funding plan.
Your cash contribution
Enter the amount you will fund yourself. It is subtracted from project cost.
Fixed annual interest rate (nominal)
Use the annual nominal rate on a fixed-rate quote. It is not APR and excludes fees.
Repayment term
Enter years; fractional years work when the result is a whole number of months.
CALCULATOR QUESTIONS
Franchise business loan calculator UK questions
How much should I contribute toward a franchise?
There is no universal percentage used here. Enter your own cash contribution and compare it with the requirements on a lender's written offer.
Does this include the initial franchise fee?
Include it in total project cost if you plan to finance it. The tool does not add franchise fees automatically.
Are royalties included in the monthly repayment?
No. Ongoing royalties and marketing fees depend on the franchise agreement and belong in your operating budget.
Is the interest rate the APR?
No. Enter a fixed annual nominal interest rate. APR may include fees, which this estimate excludes.
Does the result show if I will be approved?
No. A lender separately assesses the borrower, business, security, cash flow and requested terms.
Can I see weekly or daily payments?
No. This page calculates equal monthly repayments only; it does not invent a weekly or daily conversion from a monthly quote.