Free tool · Canada · Amortization arithmetic only
Enter a loan amount, an annual interest rate, and an amortization period, and see the payment per period, the total interest, and the total cost of the loan. This is an estimate only. It computes amortization arithmetic. It quotes no lender's rate and no approval, and it is not financial advice.
The amount you would borrow, before fees. Fees, insurance, and other lender charges are not in this calculation.
The nominal annual rate you enter yourself, for example a rate a lender quoted you. This calculator does not supply a rate and does not know what rate any lender would offer you.
How long you take to repay the loan in full, from 6 months to 30 years.
More frequent payments pay the loan down slightly faster, so total interest falls a little.
The payment is worked out with the standard amortization formula: the rate per period applied to the balance, with each payment split between interest and principal. Read the guide, then compare real offers from lenders before you borrow.
The payment formula. The payment per period is the loan amount multiplied by the rate per period, multiplied by one plus the rate per period raised to the number of periods, divided by one plus the rate per period raised to the number of periods, minus one. The rate per period is the annual rate divided by the number of payments per year. If the rate is zero, the payment is simply the loan amount divided by the number of periods.
Total interest and total cost. Total cost is the payment per period multiplied by the number of periods. Total interest is the total cost minus the loan amount.
The yearly table. Each year shows the interest paid that year, the principal paid that year, and the balance left at the end of the year. Interest each period is the balance at the start of the period multiplied by the rate per period; the rest of the payment goes to principal.
What this calculator leaves out. Lender fees, loan insurance, prepayment penalties, variable rates that change over the term, payment holidays, and taxes. It assumes the rate stays fixed for the whole amortization period and that every payment is made on time and in full.
Sources: No external figure is used on this page. Every number in the result comes from the numbers you enter and the amortization formula above. The related guides explain how business loans are actually obtained in Canada.
Next step: read the full step-by-step guide: How to Get a Small Business Loan in Canada