Small business loan calculator.

Method and limitations

Formulas: the payment is P × i / (1 − (1 + i)⁻ⁿ) with i the stated rate divided by payments a year. The cost of borrowing is everything repaid minus the cash received. The all-in rate is the periodic rate at which the payments, discounted, equal the cash you actually received; it is shown as a nominal annual figure (periodic rate × payments a year) and as an effective annual rate ((1 + periodic rate)^f − 1).

Worked example: $50,000.00 at 12% for 24 months with a 2% fee deducted up front. You receive $49,000.00, pay $2,353.67 a month, repay $56,488.17, and the cost of borrowing is $7,488.17. The all-in effective annual rate is 14.99%, against a 12% stated rate. If the same fee is added to the balance instead, the payment is $2,400.75 and the all-in effective rate is 14.94%.

Rates and the law: section 4 of the Interest Act limits interest to 5% a year on a written contract that sets the rate per day, week, month or other period under a year unless it also states the equivalent yearly rate. Section 347 of the Criminal Code sets a criminal interest rate; the Criminal Interest Rate Checker tests an all-in rate against it, and the commercial-loan exceptions are set out in regulations, so ask a lawyer if a rate looks high.

What this is not: the tool supplies no rates or fees and is not a quote or an approval. Lenders can differ on compounding, fee timing and early-repayment charges.

FAQ

How do I calculate the payment on a small business loan?

Use the amortization formula with the rate per payment. On $50,000.00 at 12% over 24 months, repaid monthly, the payment is $2,353.67 when a 2% fee is taken out of the cash you receive, and $2,400.75 when the fee is added to the balance.

Why is the all-in rate higher than the interest rate?

Fees reduce the cash you receive but you repay the full amount, so the true rate on the money in hand is higher. In the example 12% becomes 14.99% effective.

Does paying bi-weekly or weekly change the cost?

The tool divides the stated rate by the number of payments a year and uses that many payments, so the figures reflect your chosen schedule. Your lender's own method may differ.

What fees should I enter?

Any origination, application, broker or administration fee that is charged on this loan. Leave out insurance you could decline.

Is there a limit on how high the rate can be?

Section 347 of the Criminal Code sets a criminal interest rate. Use the criminal interest rate checker for the test, and get legal advice for commercial loans.

Sources

• Interest Act, section 4 (Justice Laws Website), retrieved October 2026
• Criminal Code, section 347 (Justice Laws Website), retrieved October 2026