Calculator
Partner buy-in loan
calculator.
Estimate what a loan for your capital contribution would cost each month and in total, and how much of your expected profit share the repayments would take.
How it works
How the figures are worked out.
The calculator treats the capital contribution as a standard repayment loan: a level monthly payment that covers interest and capital, clearing the balance by the end of the term. The payment uses the usual amortisation formula, with the annual rate divided by twelve.
Total cost of borrowing is the interest plus any arrangement fee you enter, worked out as a percentage of the loan. If you add your expected annual profit share, a year of repayments is shown as a percentage of it, before tax and drawings.
Some partner capital loans are arranged differently, for example with interest only for a period or with repayments taken from profit distributions. The calculator shows the plain repayment case, so you can compare an offer against it.
Illustrative only. The figures are estimates based on the numbers you enter, including any rates and fees, which are your own assumptions. They are not a quote, an offer of finance or the rate you would be offered. Lenders decide eligibility, rates and terms.
Professional Practice Loans is a broker, not a lender: we search the market for lenders suited to your practice. Finance of £25,000 or less for sole traders and small partnerships can be regulated consumer credit. We'll tell you at the outset if that applies to your firm.
Questions
About this calculator.
What is a partner capital contribution?
When you join a partnership or LLP as an equity partner or member, the firm will usually ask you to contribute capital. The amount is set by the firm and is normally linked to your profit share. It is your stake in the firm’s balance sheet, returned to you on exit under the terms of the agreement. Our partner capital loans guide explains more.
Why compare the repayments with my profit share?
The repayments are usually met from your share of profits, after tax and your living costs. Seeing a year of repayments as a percentage of your expected profit share is a quick check on whether the loan fits. Profit shares are not fixed, so allow some headroom.
Does the calculator include tax relief on the interest?
No. The figures are before any tax relief. Interest on a loan used to buy into or put capital into a partnership can qualify for income tax relief in some circumstances, so take tax advice before you rely on it.
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for your practice?
A calculator can only use the numbers you give it. Tell us what the funding is for and we will search the market for lenders suited to your practice. No obligation.
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