Business Loan Calculator

Use our free business loan calculator to estimate interest rates and
monthly payments for financing your business. Calculate business loan
affordability and make Smarter business decisions.

If you’re looking to borrow money to finance your business, you’ll notice that there are many lenders and terms out there. Different lenders offer different business financing products, terms and interest rates. Fortunately, you don’t need to do all the homework yourself. Use our business loan calculator to get estimated interest rates and monthly payments for a business loan. This will help you understand the total cost of business financing, should you decide to apply for it.

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To use our business loan calculator, simply fill in the calculator fields below and we will calculate how much a loan will cost your business

Business Loan Calculator

1 year2 year term5 years

Your Payment Details

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"Below you will find a detailed breakdown of your payments in each month and each year. Find out how much interest, principal and total you'll be paying with the information you entered. Change your term length, interest rate and loan amount to see how it impacts your payment breakdown."

Understanding your business loan calculations

Several critical factors determine the cost of a business loan. Lenders will usually look at the amount of time your business has been operational and your monthly sales volumes, among other factors, to evaluate the risk of giving out a loan. Based on this information, the decide how “risky” the loan would be. The higher the risk the lower the amount of money a business will qualify for, and the higher the interest rate will be. As a rule of thumb, the lower the risk, the lower the interest rates.

Here are the key terms to know when calculating the cost of a business loan.

Monthly Payments

This is the expected total amount you would have to pay each month.  This value will be based on the terms of the business loan. Your monthly payments will typically be lower if you choose a business loan with a longer term.

Total Cost of Loan

This is the expected total cost of your business loan. It includes all the other associated costs of taking out the loan, including interest and any applicable fees.

Payment Details

The Payment Details table breaks down all your payments over the term of your business loan, and illustrates the total principal and interest amounts that will be paid back each year over the course of your loan term. Please speak to your lender if you are unclear about any of the loan terms.


This is your Annual Percentage Rate. (also knows as ‘interest rate’) Think of the APR as the total annual cost of your personal loan. For example. if you take out a $100,000 loan for 1 year, at 10% interest, you will have to pay back $110,000 after the one year passes. An APR on a business loan will depend on your credit score and business financials.


What factors to consider when shopping for a business loan?

When you’re making your final decision, there are some factors worth considering that may go beyond what you’ll find on our small business loan calculator. Look for and pay close attention to:

The loan’s terms
Pay close attention to the terms of the loan. They determine your repayment expenses. Longer terms can offer you more flexibility, but they often mean a higher total cost of borrowing.

Pay close attention to the loan agreement and ask questions until you are certain you fully understand all fees that your loan comes with. For example, you can ask if the loan comes with an “origination fee” or an “administrative fee”. Will the lender charge an extra fee for NSFs. There may also be a fee applied if you decide to repay your loan too early. Consider these costs when determining the full cost of a business loan.

Repayment structure
Different financing products are repaid differently. For example, a typical term loan has the same fixed monthly repayment amount. However a Merchant Cash Advance works differently, where the loan is repaid daily, based on the percentage of sales for that day, which means you’ll repay more when you sell more, and less when you sell less. It is important to utilize a product that fits your business model and industry.

What is the average interest rate for a small business?

Your rates will depend on your credit score and your business’s financial information, such as your monthly sales volume. If you have a good credit history and apply for a loan from traditional lenders (banks, credit unions) you may expect the APR to be 4%-12%. With alternative online lenders, the annual percentage rate may be 15% and higher, because their qualification requirements are more relaxed and they charge extra for taking on more risk.

How do I qualify for a business loan online?

Getting a business loan online is very easy and you can do it entirely online. You’ll need to provide basic paperwork such as your business registration documents and bank statements. There may be other things a lender will ask of you. Once you submit your online application, most online business lenders will get back to you with a decision almost instantly. You may also be eligible for government grants, so make sure to research those options for your business.

How can I get a business loan online?

Below you will find a list of online business loan providers that can get you business financing in as little as 24-48 hours. These lenders have been carefully verified and selected by Smarter Loans and are some of the most reputable financial companies in Canada.

Click Apply Now next to a company of your choice, or select any of the lenders to visit their profile and learn more about their specific products.