Business loan calculator
Enter the loan amount, rate and term to see the monthly repayment, total interest and annual debt service for your business.
Estimated monthly repayment
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How this calculator works
- Convert the annual rate to a monthly rate.
- Set the number of payments to the term in months.
- Apply the amortisation formula to find the fixed monthly repayment.
- Multiply the payment by 12 to find the annual debt service.
Formula: M = P × r ÷ (1 − (1 + r)^−n)
Frequently asked questions
Is business loan interest tax deductible?
Interest on money borrowed to earn business income is generally deductible. Confirm your specific situation with a qualified accountant.
Does this include fees?
No. Add any arrangement or security fees to the amount financed to see the full cost.
What is annual debt service?
It is the total of your loan payments over twelve months. Lenders compare it to your cash flow when assessing affordability.
Sources
- Canada Revenue Agency — Canada Revenue Agency
Important legal information
Promissory.ca is not a lender, bank, mortgage broker or credit counsellor. We do not make lending decisions and we do not charge you a fee to use this service.
Submitting an application does not guarantee approval. All applications, rates and terms are set and approved solely by the individual lender or licensed professional.
Rates, fees and loan amounts vary by lender, province, loan type and your credit profile. Advertised rates are the lender's lowest offered rate and may not be available to you.
Lenders may perform a credit check with one or more credit bureaus, including Equifax and TransUnion. A hard credit inquiry may affect your credit score.
There is no obligation to accept any offer presented to you. Review every agreement carefully before signing.
Borrow only what you can reasonably afford to repay. Late or missed payments may result in additional fees, collection activity and negative credit reporting.
We handle personal information in accordance with the Personal Information Protection and Electronic Documents Act (PIPEDA). See our Privacy Policy for how we collect, use and protect your information.
If you are struggling with debt, consider contacting a non-profit credit counselling service or a Licensed Insolvency Trustee before borrowing more.
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Compare loan optionsAffiliate disclosure: Promissory.ca is a free comparison and referral service. We may receive compensation from lending partners when you click a partner link or submit an application. This compensation does not affect the information or comparisons we publish.