Personal Loan Calculator (Canada)
Estimate your monthly, bi-weekly or weekly payment on a personal loan, see the total interest you will pay, and find out how much faster you can be debt-free with extra payments. Add any upfront fee to see the loan’s real cost (effective APR).
Estimates only. Your lender’s offer depends on your credit score, income and debts.
| Year | Payments | Principal | Interest | Balance |
|---|
How to use the personal loan calculator
- Enter the amount you want to borrow.
- Enter the APR from your loan offer. No offer yet? Use the rate table below as a starting point.
- Choose the term in years or months, and how often you will pay.
- Add any fee (origination, admin or setup fee) to see the true cost.
- Try an extra payment to see how much interest and time you save.
Personal loan payment formula
Lenders use the standard amortization formula. Each payment is the same, but the share going to interest shrinks over time while the share going to principal grows.
Payment = P × r ÷ (1 − (1 + r)−n)
P = loan amount · r = APR ÷ payments per year · n = total number of payments
Example: $15,000 at 9.99% over 5 years (60 monthly payments). r = 0.0999 ÷ 12 = 0.008325. The payment is $318.63 per month, and you pay $4,117.91 in interest over the life of the loan.
How the loan term changes your total cost
A longer term lowers your payment but raises the total interest. Here is the same $15,000 loan at 9.99% APR:
| Term | Monthly payment | Total interest | Total repaid |
|---|---|---|---|
| 3 years | $483.94 | $2,421.75 | $17,421.75 |
| 5 years | $318.63 | $4,117.91 | $19,117.91 |
| 7 years | $248.94 | $5,910.98 | $20,910.98 |
Going from 3 to 7 years cuts the payment by about $235 a month, but costs about $3,490 more in interest.
How your interest rate changes your payment
Your rate depends mostly on your credit score. Here is a $10,000 loan over 5 years at different APRs:
| APR | Monthly payment | Total interest |
|---|---|---|
| 8% | $202.76 | $2,165.84 |
| 15% | $237.90 | $4,273.96 |
| 25% | $293.51 | $7,610.79 |
| 35% | $354.90 | $11,294.18 |
At 35%, you pay more in interest than you borrowed. Improving your credit before you apply, or adding a co-signer, can save thousands.
Extra payments: the fastest way to save
Example: On the $15,000 loan at 9.99% over 5 years, adding $100 a month pays it off in 43 months instead of 60 and cuts interest from $4,117.91 to $2,887.71, a saving of $1,230.20.
Before you prepay, check your contract for a prepayment penalty. Many personal loans in Canada allow early repayment without a fee, but not all do.
APR vs interest rate: why fees matter
The interest rate is the cost of borrowing the money. The APR (annual percentage rate) should include mandatory fees too. If a lender charges a $500 fee on a $15,000 loan, you only receive $14,500 but repay as if you borrowed $15,000. Enter the fee in the calculator: the effective APR shows the real yearly cost, so you can compare offers fairly.
Monthly vs bi-weekly payments
Bi-weekly payments (26 per year) match many Canadian pay schedules. On the same loan and term, the total interest is slightly lower because the balance drops a little faster between payments. Switching the frequency in the calculator shows the exact difference for your loan.
What lenders look at before approving you
- Credit score: the biggest factor in your rate.
- Debt-to-income ratio: how much of your gross income already goes to debt payments.
- Stable income: pay stubs, employment history, or tax returns if self-employed.
- Existing credit use: high credit card balances can lower your score and your approval odds.
Make sure the payment fits your budget before you sign. A useful check: your total monthly debt payments should stay comfortably below your take-home pay after rent and essentials.
Personal loan vs other options
| Option | Best for | Watch out for |
|---|---|---|
| Personal loan | A fixed amount, fixed payment, set end date | Fees and high rates with weak credit |
| Line of credit | Flexible or ongoing expenses | Variable rate, no forced payoff date |
| Credit card | Short-term purchases paid in full | Rates often around 20% or more |
| Debt consolidation loan | Combining high-interest debts into one payment | Only helps if the new rate is lower |
Frequently asked questions
How is a personal loan payment calculated?
With the amortization formula: payment = P × r ÷ (1 − (1 + r)^−n), where P is the loan amount, r is the periodic rate (APR divided by payments per year) and n is the number of payments. The calculator above does this instantly.
What is the monthly payment on a $10,000 personal loan?
Over 5 years, about $202.76 a month at 8% APR, $237.90 at 15% and $293.51 at 25%. Over 3 years at 8%, it is about $313.36.
What is the monthly payment on a $15,000 loan over 5 years?
At 9.99% APR, about $318.63 a month, with $4,117.91 in total interest.
What is the maximum interest rate on a personal loan in Canada?
Since January 1, 2025, Canada’s Criminal Code caps the rate on most loans at 35% APR. Some products, such as certain payday loans, follow separate provincial rules.
Is a longer loan term better?
It lowers the payment but increases the total interest. Choose the shortest term whose payment still fits your budget comfortably.
Can I pay off a personal loan early?
Usually yes, and it saves interest. Check your contract for prepayment penalties first.
Does checking my rate hurt my credit score?
Many lenders offer pre-qualification with a soft credit check, which does not affect your score. A formal application usually triggers a hard check, which can lower it slightly for a while.
Is this calculator accurate?
It uses the standard amortization formula and is accurate for fixed-rate loans. Your real payment may differ slightly because of rounding, payment dates, insurance or fees your lender adds.
Related calculators
- Loan calculator
- Debt consolidation calculator
- Credit card payoff calculator
- Car loan calculator
- Line of credit calculator
Disclaimer: This calculator provides estimates for information only and is not financial advice. For consumer rights on loans and credit in Canada, see the Financial Consumer Agency of Canada.