Running a business often means taking on financing to fuel growth, cover expenses, or seize new opportunities. Our business loan calculator helps Canadian business owners quickly estimate monthly payments, total interest, and overall loan costs of a business loan. Whether you’re comparing short-term vs. long-term financing or evaluating different interest rates, this free tool gives you the insights you need to plan smarter.
- Smarter Loans
- Business Loan Calculator
Business Loan Calculator
Business Loan Calculator Canada
Estimate your payment, total interest, and overall cost for a Canadian business term loan. Choose an industry preset or enter your numbers. Results will appear after you press Calculate. Disclaimer: Estimates only; confirm terms and fees with your lender. Not financial advice.
Choose Your Industry
Tap a tile to prefill a typical loan amount and monthly revenue for that industry. Adjust anything after.
🏬 Retail Inventory and fit outs
🍽️ Restaurant Equipment and renovations
🛒 eCommerce Ad spend and stock
💈 Salon and Spa Build outs and marketing
🏭 Manufacturing Machinery and tooling
🏗️ Construction Payroll and materials
🚗 Automotive Service bays and tools
📦 Logistics Fuel and expansion
👨💼 Professional Services Hiring and tech
✨ Other Custom scenario
Business Loan Calculator
$
$50k
$75k
$100k
$250k
$500k
$1,000,000
The amount you plan to borrow.
8.9912.9919.99
APR excluding origination fees. Periodic rate is APR divided by payment frequency.
0.5
1
3
5
Enter your loan term in years. Example 0.5 equals 6 months.
Monthly
Biweekly
Weekly
More frequent payments can reduce total interest slightly.
$
Used for the payment to revenue ratio check. Many lenders like to see payments under 10 to 15 percent of monthly revenue.
$
Add a fixed extra amount to each payment to see how much faster you could repay.
Tip: If your payment to revenue ratio is above 15 percent, consider a smaller loan, longer term, or a different product like a line of credit.
Results
Payment per Period
$0
Total Interest
$0
Total Repaid
$0
Estimated Periods
0
Payment to Revenue
0%
Total repaid composition$0
Principal $0
Interest $0
| Metric | Value | Explanation |
|---|
Show Amortization Schedule first 12 rows
| # | Payment | Interest | Principal | Balance |
|---|
Payments use the standard amortization formula with APR divided by payments per year. Extra payments reduce interest and shorten the schedule. Some lenders charge fees or have prepayment rules that can change results.
Business Loan vs Line of Credit vs MCA
| Feature | Business Term Loan | Business Line of Credit | Merchant Cash Advance |
|---|---|---|---|
| Cost Structure | APR with amortization | APR on drawn balance only | Factor rate multiplier |
| Repayment | Fixed periodic payment | Flexible draws and repayments | Percent of sales until repaid |
| Best For | Planned purchases and projects | Ongoing working capital | Card sales driven businesses |
| Speed | 1 to 3 weeks common | 1 to 2 weeks | 1 to 3 days |
Need an MCA? Use our MCA Calculator.
Compare Trusted Canadian Business Lenders
Check rates, terms, and eligibility for business loans, lines of credit, and more. One simple form, then connect with providers.
See Business Loan OptionsHow to Use the Business Loan Calculator
- Select an industry preset or enter your own loan amount and monthly revenue.
- Enter your APR, set a term length in years, then pick a payment frequency.
- Optional: add an extra payment to see time and interest saved.
- Press Calculate to view payment per period, total interest, and payment to revenue ratio.
- Open the amortization schedule to see how each payment splits between interest and principal.
Rule of thumb in Canada: keep total debt payments under a comfortable share of monthly revenue. Lenders look at cash flow, bank statements, credit, and time in business.
Business Financing Tips for Retail Companies
Plan, deploy, and repay with confidence
Best uses: seasonal inventory, POS upgrades, light renovations, signage, ecommerce integration.
- Funding options: term loan for upgrades, line of credit for stock swings, equipment financing for POS and refrigeration.
- Healthy metrics: payment to revenue under 10 to 12 percent in slower months; inventory turns aligned to term.
- Watch outs: aging stock, markdown risk, vendor financing that is more expensive than a bank loan.
- Documents: three to six months of bank statements, financials, sales summaries, lease details.
- Seasonality: stress test cash flow for off-peak months; keep a small buffer for promotions and returns.
Not sure a term loan is right for this purchase? Compare with a Merchant Cash Advance or a flexible line of credit for working capital gaps.
Ready to check your options?
See offers for business loans, lines of credit, and equipment financing from vetted Canadian providers.
Start Your ApplicationBusiness Financing in Canada FAQs
How do I calculate a business loan payment?
Convert APR to a periodic rate by dividing by payments per year, then apply the amortization formula. This tool handles it once you press Calculate.
What payment frequency should I choose?
Monthly is simplest. Biweekly and weekly can reduce total interest slightly and may better match cash flow for contractors and logistics.
What APR should I enter?
Use the lender’s APR. If you only have a rate plus fees, ask the lender for the APR or model fees by increasing the loan amount.
How long should my term be?
Match term length to the useful life or payback period of what you’re financing. Equipment that lasts five years should not be financed for one year unless cash flow supports it.
What is a safe payment to revenue ratio?
Many lenders like total loan payments under 10 to 15 percent of monthly revenue. Highly seasonal businesses often aim lower to keep cushion.
Can I save interest by paying early?
Yes. With amortizing loans, extra payments reduce principal and future interest. Check your agreement for any prepayment fees.
What fees should I expect?
Origination fees, underwriting fees, and sometimes closing costs. Include them in your total cost comparison.
How fast can I get funded?
Banks can take one to three weeks. Online lenders are faster. MCA funding can be one to three days but is usually more expensive.
Do I need collateral?
It depends. Some lenders take a general security agreement over business assets, others may be unsecured at smaller amounts but price for risk.
How does a line of credit differ from a loan?
LOCs are revolving and charge interest only on the drawn balance. Loans have fixed payments on a fixed balance.
Loan vs MCA: when does MCA make sense?
When speed and repayment flexibility tied to card sales outweigh the higher cost, such as emergency repairs or short sales cycles.
Will this affect my credit?
Lenders may check personal and business credit. Reporting varies by product. Defaults can impact credit and legal standing.
What documents do lenders ask for?
Typically bank statements, business financials, tax returns, IDs, and sometimes AR/AP aging and key contracts or leases.
Can startups get business loans?
It’s harder without revenue history. Consider equipment financing, secured options, or a line of credit tied to deposits. Personal guarantees may be required.
How do I compare offers fairly?
Compare APR, fees, total paid, collateral, prepayment rules, covenants, and funding speed. Use the calculator with each set of terms.
Find the right financing today
Compare personalized offers from Canadian lenders for business loans, LOCs, equipment financing, and more.
Get Offers
