Vaughan, Ontario · FSRA #13737Business Loan Calculator —
Business Loan Calculator —
payment, interest,
all-in cost.
Estimate your monthly payment and total borrowing cost in seconds. When the numbers work, we compare 100+ lenders to find your best rate.
Business loans not secured by real estate are not regulated by FSRA.
Explore Business Loans- FSRA licensed #13737
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Business loan calculator.
Fact-checked by Surrayya Afzal, Principal Broker, FSRA #M14001433·Last reviewed October 2026
The short answer
Your payment comes from three numbers: loan amount, interest rate and term. Add the lender's fee to see the real total cost of borrowing.
Your numbers
Business term loans compound monthly. Your real rate depends on credit, cash flow, time in business, and security. See financing options →
Estimated monthly payment
$3,150
9.50% over 5 years
Loan amount$150,000
Total interest over term$39,017
Origination fee (1.00%)$1,500
Net advance after origination fee$148,500
Estimated APR including fee9.93%
Total cost of borrowing$40,517
Where your money goes
Principal you borrow vs. the interest and fees you pay on top.
Principal $150,000 Interest $39,017 Fee $1,500
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Mortgage Squad Advisors · FSRA #13737 · Licensed in Ontario only.
Read the full explanationThe rules behind the numbers, with worked examples.
Business loan costs, compared
A $150,000 loan at 9.50% over five years costs about $3,150 a month. A 1% fee leaves $148,500 in proceeds. The APR above solves the cash-flow rate from the net advance and repayments; it changes with your inputs.
| Option | Rate and fee approach |
|---|---|
| Bank term loan | File-specific rate, security and lender fees |
| CSBFP | Floating term rate capped at prime + 3%; fixed term capped at the lender’s residential mortgage rate + 3%; line of credit capped at prime + 5%. Registration fee 2%; annual administration fee 1.25%, included within the maximum interest rate. |
| BDC | Pricing depends on your business and loan; request a written quote. |
CSBFP limits total $1.15 million: $1 million in term loans and $150,000 in a line of credit. Do not add the administration fee to a quoted rate that already includes it. Compare annual operating cash flow with annual debt service; a lender’s required coverage depends on the file. Source: ISED CSBFP.
How to use this calculator
- Enter your loan detailsInput the loan amount you need, the annual interest rate, and the loan term in years. Business term loans typically run 1–7 years. The calculator updates instantly as you type.
- Add any origination feeInclude the lender's one-time origination or setup fee as a percentage of the loan. This reveals your true all-in cost of borrowing — not just the headline monthly payment.
- Review the numbers, then applyCompare the monthly payment, total interest, and estimated APR. When the numbers make sense for your business, start a no-pull pre-qualification — we'll find the best rate across our lender network.
How this is calculated
Estimates use equal monthly payments with interest compounded monthly (the business-loan convention), amortized over the term you enter. The origination fee is added to your total cost of borrowing. Revolving lines of credit charge interest only on the drawn balance, so for those this is an upper-bound estimate. Your actual rate, term, and fees are confirmed by the lender at underwriting.
How is a business loan payment calculated?
The monthly payment is a function of three inputs: the loan amount (principal), the annual interest rate, and the loan term (amortization). The calculator amortizes the principal plus interest into equal monthly payments over the term. A shorter term means higher monthly payments but far less total interest; a longer term lowers the payment but raises the total cost of borrowing.
What is an origination fee?
An origination (or lender) fee is a one-time charge some business lenders add to set up the loan, an illustrative 0.5% to 3%, varying by lender (government program loans such as CSBFP charge 2%). It's often deducted from the advance, so a $150,000 loan with a 1% fee nets you about $148,500. This calculator adds it into your total cost of borrowing so the number you see is the real one — we disclose every fee in writing before you sign.
What interest rate will I pay on a business loan in Canada?
It depends on your file. As illustrative broker estimates (October 2026, not a lender quote), unsecured working-capital lines run roughly prime + 2.5% to prime + 6%; secured term loans sit around 6%–9% on real-estate-backed, 7%–12% on equipment, and higher on receivables. The main drivers are your credit score, business cash flow and debt-service coverage, time in business, and whether the loan is secured. See the full breakdown on our business loans page.
What types of business loans can I estimate here?
Any amortizing business loan: a term loan, equipment financing, a real-estate-secured business loan, CSBFP financing, or an acquisition loan. For revolving working-capital lines you pay interest only on what you draw, so use this as an upper-bound estimate. Explore the financing options or model a property purchase with the commercial mortgage calculator.
What do I need to apply for a business loan?
A business loan application usually asks for recent business financial statements (income statement and balance sheet), 6–12 months of bank statements, and consent for a credit check. For a smaller small business loan or a business line of credit, lenders weigh cash flow and time in business more than collateral. Start a no-pull pre-qualification and we'll tell you exactly what your file needs.
Does applying for a business loan affect my credit score?
Pre-qualification with us needs no credit pull. At full application, most small-business lenders review business credit and also pull the owners’ personal credit, which is a hard inquiry. It stays on your personal report for about three years with Equifax (FCAC), but its score impact is small and fades within months. Applying through one broker avoids stacking separate applications at several lenders.
How do I get the lowest rate on a business loan?
Match the product to the use of funds, put up security where it lowers the rate, and shop widely. Your bank quotes one rate sheet; a broker compares your file across business-lending partners — banks, monolines, BDC-style program lenders, and private — and structures across them. Start a no-pull pre-qualification.
What is an origination fee on a business loan?
An origination (or lender) fee is a one-time charge some business lenders add to set up the loan — typically 0.5% to 3%, varying by lender. Government program loans such as CSBFP charge 2%. It's often deducted from the advance, so a $150,000 loan with a 1% fee nets you about $148,500. This calculator adds it into your total cost of borrowing so the number you see is the real one. We disclose every fee in writing before you sign.
Is there a fee to use a business loan broker?
$0 to you on standard A-lender and bank business loans — the lender pays us a finder fee at closing, disclosed in writing on every file. B-lender and private business loans may carry a brokerage fee — always disclosed before you commit and never deducted without your written consent.
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