Loans · Business

BDC loan calculator.

BDC says it offers principal payment holidays and seasonal repayment schedules. This page prices a principal holiday on a loan you describe, and shows the payment if your rate moves. It is not BDC's calculator and uses no BDC rates.

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Holiday cost and rate what-if

Method and limitations

Source for the features: BDC's business loans page states that BDC offers “principal payment holidays and seasonal repayment schedules” and that its Commercial Real Estate Loan includes interest-only payments. It does not publish rates there, so you enter the rate from your own offer. Seasonal schedules are not modelled.

Formulas: monthly rate i = (1 + r/m)m/12 − 1. During the holiday the payment is P × i. After it, payments over n months that leave a balloon B are (P − B(1 + i)−n) × i / (1 − (1 + i)−n). The comparison loan has no holiday and the same total number of months.

Worked example: $300,000.00 at 8.5% for 120 months with a 6-month holiday: $2,125.00 a month for 6 months, then $3,844.36. Total interest is $151,007.56; with no holiday the payment is $3,719.57 and total interest $146,348.48, so the holiday costs $4,659.08 more. If the rate rose 1 point, the post-holiday payment would be $4,005.05.

What this is not: it does not know BDC's pricing, fees or how it recalculates a floating-rate loan when rates change. The what-if rows simply re-run your numbers at a different rate for the whole loan. Get the schedule from BDC.

FAQ

Does BDC publish loan rates?

Its business loans page does not list rates; it points to contacting BDC. Enter the rate from your own offer.

What is a principal payment holiday?

A period when you pay only interest. BDC lists principal payment holidays among its repayment options. The balance does not fall during it, so later payments are higher and total interest is higher.

How much does a principal holiday cost?

In the example, $4,659.08 of extra interest over the loan compared with starting principal payments right away.

What happens to my payment if the rate rises?

The table shows your payment at rates one to two points up or one point down. At +1 point the post-holiday payment in the example is $4,005.05.

Is this BDC's official calculator?

No. BDC offers its own business loan calculator in its toolkit at bdc.ca. This page is independent and not affiliated with BDC.

Sources

Disclaimer

Estimates only, not financial, legal or tax advice, and not a quote or an approval. Confirm every rate, fee and term with your lender and your agreement.

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