Business loan calculator
Enter a loan amount, interest rate, term and any upfront fee to estimate the monthly payment, the total borrowing cost and the effective annual cost of a business term loan.
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Business loan calculator
Estimate the monthly payment, total cost and effective annual cost of a fixed-rate business term loan, including an upfront fee.
Assumes monthly payments on a fixed-rate amortizing loan. Some business products use daily or weekly payments, factor rates or holdbacks, which this calculator does not model.
How this calculation works
The payment uses the standard amortizing-loan formula. The upfront fee is treated as reducing the funds you actually receive, and the effective annual cost is solved from those net proceeds and the payment schedule.
This is why a loan with a lower quoted rate and a large fee can cost more per year than one with a higher rate and no fee.
How to use the result
- Some business financing is priced with a factor rate, daily or weekly debits, or a holdback on card sales. Ask the provider to express the cost as a total dollar amount and an annual rate so offers can be compared.
- Check whether a personal guarantee or security on business assets is required.
- Results are estimates, not a financing offer.
Compare related options
- Compare business financing options in Canada
- Small business loans in Canada
- Equipment financing: loans vs leasing
Sources and regulatory references
Related guides
Business loan requirements in Canada
Lenders assess a business loan application on more than just revenue. Here is what documentation and criteria typically matter.
Business loan vs. line of credit: which fits the need
A term loan and a line of credit solve different financing problems. Here is how to match the structure to the need.
Equipment financing vs. leasing for a business
Buying equipment with a loan and leasing it involve different ownership, cost and tax outcomes. Here is how they compare.
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MoneyLoanHub publishes general information for research and education. It is not financial, legal or tax advice and it does not account for your personal circumstances. MoneyLoanHub is not a lender and does not make credit decisions. We provide educational information and may refer visitors to third-party providers. Terms, eligibility and availability are set by each provider. Always confirm rates, fees and eligibility directly with the provider before applying. Full disclaimer.