Loans Calculators · Canada
Business loan calculator (payment, total interest).
Estimate your business loan payment for equipment financing, working capital, expansion, or commercial real estate. Compare different terms and payment frequencies to find the best option for your cash flow.
Borrowing for yourself rather than a business? Use the personal loan calculator for Canada instead.
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Your payment
Fill the form and press Calculate.
How the business loan calculator works
This calculator estimates your business loan payments and total financing costs for various purposes. Whether you're financing equipment, inventory, expansion, or real estate, understanding payment obligations helps with cash flow planning.
Types of business loans in Canada
Term loans: traditional fixed-term loans with regular payments. Best for major purchases like equipment, vehicles, or property. Terms typically range from 1–10 years.
Business lines of credit: revolving credit that you can draw from as needed. Interest is only charged on the amount used. Great for cash flow fluctuations and seasonal businesses.
Equipment financing: loans specifically for purchasing business equipment. The equipment serves as collateral, often resulting in better rates. Terms usually match the useful life of the equipment (3–7 years).
Commercial real estate loans: financing for purchasing or renovating business property. Longer terms (15–25 years) with lower monthly payments. Typically require 20–30% down payment.
Working capital loans: short-term financing (1–3 years) for day-to-day operations, inventory purchases, or bridging cash flow gaps.
Canadian business loan programs
- Canada Small Business Financing Program (CSBFP): government-backed loans for equipment, leasehold improvements and property, issued by participating lenders. Check the program site for current limits.
- BDC financing: Business Development Bank of Canada offers small business, working capital, equipment and commercial real estate loans.
- Export Development Canada (EDC): financing solutions for businesses involved in international trade.
- Provincial programs: many provinces offer loan programs, grants, and guarantees for small businesses.
Tips for getting a business loan
- Prepare a solid business plan showing how funds will be used.
- Know your credit score: both personal and business credit history matter.
- Have financial statements ready: profit & loss, balance sheet, cash flow.
- Consider collateral: secured loans typically offer better rates.
- Shop around: compare banks, credit unions, BDC, and alternative lenders.
- Match term to asset life: don't finance short-term assets with long-term debt.
Business loan payment table: common amounts and terms
Illustrative monthly payments for typical business loan sizes, calculated with the same standard amortization formula as the calculator above, at 7.5% annual interest, paid monthly. Change the interest rate in the calculator and this table updates. Your lender's rate, fees and payment schedule will differ.
| Loan amount | 3 years | 5 years | 7 years | 10 years |
|---|---|---|---|---|
| $25,000 | $778 | $501 | $383 | $297 |
| $50,000 | $1,555 | $1,002 | $767 | $594 |
| $60,000 | $1,866 | $1,202 | $920 | $712 |
| $100,000 | $3,111 | $2,004 | $1,534 | $1,187 |
| $200,000 | $6,221 | $4,008 | $3,068 | $2,374 |
| $250,000 | $7,777 | $5,009 | $3,835 | $2,968 |
| $500,000 | $15,553 | $10,019 | $7,669 | $5,935 |
| $1,000,000 | $31,106 | $20,038 | $15,338 | $11,870 |
Example: a $200,000 business loan at 7.5% over 10 years has a monthly payment of about $2,374.04, which works out to about $84,884 in total interest. Shorter terms cost more each month but much less interest overall. Use the calculator for a 10-year equipment loan, a $60,000 loan or any other amount.
Formula: payment = P × i ÷ (1 − (1 + i)−n), where P is the amount borrowed, i is the interest rate per payment period (annual rate ÷ payments per year) and n is the number of payments. Total interest = payment × n − P. This is the standard fixed-rate amortizing loan formula; it excludes origination fees, insurance, and any variable-rate changes.
Business loan calculator FAQ
How is a business loan payment calculated?
Fixed-rate term loans use the amortization formula above: each payment covers that period's interest plus part of the principal, and the payment stays the same until the balance reaches zero.
How much is the payment on a $1,000,000 business loan?
At 7.5% over 10 years, about $11,870.18 a month; over 20 years at the same rate, about $8,055.93. Pick the $1M preset above and change the term and rate to match your offer.
How much is the payment on a $200,000 business loan?
At 7.5%, about $4,007.59 a month over 5 years or $2,374.04 a month over 10 years.
How much is the payment on a $60,000 business loan?
At 7.5%, about $1,202.28 a month over 5 years or $1,866.37 a month over 3 years.
Can I use this for an equipment loan?
Yes. A fixed-rate equipment loan is a term loan, so enter the amount financed (after any down payment), the rate and the term. A 10-year equipment loan uses the 10-year option. If the lender charges fees or requires a balloon payment, the real cost will be higher than shown.
What about a revolving line of credit?
A line of credit is different: interest is charged only on the balance you use. Try the line of credit calculator for that.
Does a business loan need a fixed rate?
No. Many business loans have variable rates that move with a lender's prime rate, so the payment can change. This calculator assumes one fixed rate for the whole term.
Lender product information: BDC business loans lists loan types such as small business, working capital and equipment loans (checked 2026-09-30). Government-backed options: Canada Small Business Financing Program.
Disclaimer
This calculator provides estimates for educational and informational purposes only. Actual business loan payments may vary based on lender policies, credit profile, collateral requirements, origination fees, and other factors not included in this calculation. Interest on business loans is generally tax-deductible: consult a tax professional for specifics. Always consult qualified financial advisors before making business financing decisions.