Small business loan calculator Canada.

How it is calculated

The stated rate is converted to an effective annual rate: EAR = (1 + rate ÷ m)^m − 1 with m = 12 for monthly or 2 for semi-annual compounding. The rate per payment is (1 + EAR)^1/k − 1 for k payments a year. The payment is the level amortizing payment over amortization × k payments. Interest and the balance are tracked for the term. The effective annual rate including fees is the rate at which the payments over the term plus the balance owing at the end are worth the amount you borrowed less the fee.

Worked example

$100,000.00 at 9% compounded monthly, amortized and termed over 5 years with a $500.00 fee paid up front: the monthly payment is $2,075.84, interest over the term $24,550.13, and the effective annual rate is 9.38% before fees and 9.61% with the fee. Switching to bi-weekly payments gives a payment of $956.15 and cuts interest to $24,299.60. Keeping a 10-year amortization with a 5-year term gives a payment of $1,266.76 and $61,023.99 still owing at the end of year 5.

Sources and limits

The conversion between rates and periods is standard compound-interest arithmetic. On disclosure, the federal Interest Act, section 4 (current to 2026-09-21) says that, except for mortgages on real property, where a contract states interest for a period of less than a year, no interest above 5% per annum is recoverable unless the contract expressly states the yearly equivalent. Ask your lender for the annual figure in writing. Lenders also set their own rules on prepayment, fees and compounding, which this page cannot see. For government-backed loans see the CSBFP calculator; for the legal cap on interest see the criminal interest rate checker. Checked 2026-10-16.

FAQ

How much is the payment on a $100,000 small business loan in Canada?

It depends on rate, amortization and frequency. At 9% over five years, paid monthly, the payment shown in the worked example is about $2,075.84. Enter your own quote above.

What is the difference between amortization and term?

Amortization is how long the payments are calculated over. The term is how long the rate and contract last. If the term is shorter, the balance left is refinanced or renewed.

Does bi-weekly payment save interest?

Paying every two weeks with the same annual rate shifts payments earlier, so interest over the term falls slightly compared with monthly. The calculator shows the difference for your numbers.

Is this the CSBFP?

No. The Canada Small Business Financing Program shares lender risk and has its own fees and limits. Use the CSBFP calculator for that program.