Loan Calculator Canada
Loan type
Monthly Payment
$481.91
Total Interest
$2,348.77
Total Cost
$17,348.77
Amortization Schedule
| Month | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $360.64 | $121.27 | $14,639.36 |
| 2 | $363.55 | $118.36 | $14,275.81 |
| 3 | $366.49 | $115.42 | $13,909.32 |
| 4 | $369.46 | $112.45 | $13,539.86 |
| 5 | $372.44 | $109.47 | $13,167.42 |
| 6 | $375.45 | $106.46 | $12,791.96 |
| 7 | $378.49 | $103.42 | $12,413.47 |
| 8 | $381.55 | $100.36 | $12,031.92 |
| 9 | $384.63 | $97.28 | $11,647.29 |
| 10 | $387.74 | $94.17 | $11,259.54 |
| 11 | $390.88 | $91.03 | $10,868.66 |
| 12 | $394.04 | $87.87 | $10,474.63 |
| 13 | $397.22 | $84.69 | $10,077.40 |
| 14 | $400.44 | $81.47 | $9,676.96 |
| 15 | $403.67 | $78.24 | $9,273.29 |
| 16 | $406.94 | $74.97 | $8,866.35 |
| 17 | $410.23 | $71.68 | $8,456.13 |
| 18 | $413.54 | $68.37 | $8,042.58 |
| 19 | $416.89 | $65.02 | $7,625.69 |
| 20 | $420.26 | $61.65 | $7,205.44 |
| 21 | $423.66 | $58.25 | $6,781.78 |
| 22 | $427.08 | $54.83 | $6,354.70 |
| 23 | $430.53 | $51.38 | $5,924.17 |
| 24 | $434.01 | $47.90 | $5,490.15 |
Prepayment / Part-payment
Compare scenarios
Scenario A | Scenario B | |
|---|---|---|
| Loan Amount | ||
| Annual Interest Rate (APR) | ||
| Loan Term (yrs) | ||
| Monthly Payment | $481.91 | $488.67 |
| Total Interest | $2,348.77 | $2,592.19 |
| Total Cost | $17,348.77Best value | $17,592.19 |
Loan Calculator Canada
A loan calculator helps Canadians compare loan offers and understand the full cost of borrowing before signing. Enter the loan amount, APR, and term to see monthly payments, total interest, and a full amortization schedule. Under the Interest Act (Canada), lenders must disclose the effective annual interest rate — making the APR the standard comparison metric from coast to coast.
How Canadian Loan Payments Are Calculated
Canadian personal loans use standard compound interest amortization. The Interest Act requires that if a mortgage compounds more frequently than semi-annually, the semi-annual rate must be disclosed — however, most personal loans compound monthly, so the monthly rate is simply APR ÷ 12.
Monthly payment = P × [r(1+r)^n] / [(1+r)^n − 1]
Worked Example
You borrow C$15,000 at 9.9% APR over 3 years (36 months).
- Monthly payment: C$483.89
- Total repaid: C$17,420.04
- Total interest: C$2,420.04
An extra C$100/month saves roughly C$395 in interest and clears the debt 6 months early.
Typical Personal Loan Rates in Canada (2024–2025)
| Loan Type | Typical APR Range |
|---|---|
| Personal loan (excellent credit, bank) | 7% – 12% |
| Personal loan (good credit) | 12% – 20% |
| Personal loan (fair credit) | 20% – 35% |
| Auto loan (new) | 6% – 10% |
| Credit union personal loan | 6% – 15% |
Fees & APR Disclosure
Some Canadian loans carry administration or broker fees. Federal and provincial cost-of-borrowing rules require lenders to disclose the APR, which folds mandatory charges into a single comparable rate. Compare offers on APR rather than the posted interest rate.
Semi-Annual Compounding on Mortgages
By law, Canadian fixed-rate mortgages are compounded semi-annually, not in advance — unlike most other loans, which compound monthly. This calculator applies the correct semi-annual conversion for Canada, so your payment matches what a Canadian lender quotes.
Prepayment Privileges & Penalties
An open mortgage can be repaid anytime without penalty. A closed mortgage usually allows annual prepayments of 10–20%, but repaying beyond that triggers a penalty — typically the greater of three months interest or the Interest Rate Differential (IRD).
Recent Rate Context (2025–2026)
Loan rates track the Bank of Canada policy rate. After the 2022–2023 hiking cycle, the Bank began cutting through 2024–2025. Check the current policy rate at the Bank of Canada (bankofcanada.ca) before locking a term.
What is APR and how is it regulated in Canada?
APR (Annual Percentage Rate) is the yearly cost of borrowing, including interest and mandatory fees. In Canada, lenders must disclose the APR under the federal Interest Act and provincial consumer protection legislation. Quebec has additional rules under the Consumer Protection Act. The APR lets you compare loans across lenders on a like-for-like basis — always compare APRs, not just monthly payment amounts.
Are there differences in loan rules between Canadian provinces?
Yes. While federal law (the Interest Act and the Criminal Code's 60% criminal interest rate cap) applies nationwide, provinces set their own consumer protection rules. Quebec has the most distinct regime under the Consumer Protection Act (LPC), requiring specific disclosure forms and a 10-day cooling-off period for certain loans. Ontario, BC, and Alberta each have their own payday lending caps and licensing requirements. Interest rates above 60% APR are criminal under the federal Criminal Code.
Should I use a credit union or a bank for a personal loan in Canada?
Credit unions are member-owned co-operatives that typically offer rates 1–3% lower than banks for personal loans, and more flexible qualification criteria. They are provincially regulated (not federally) and deposits are insured by provincial deposit protection schemes. Banks offer more branches and digital tools. If you already have a banking relationship, your bank may offer a loyalty rate discount. Always compare both before deciding.
How does my credit score affect loan rates in Canada?
Canadian credit scores range from 300 to 900, as calculated by Equifax and TransUnion. A score above 760 typically qualifies for the best advertised rates. Scores between 660–759 are considered "good" and will access most mainstream products. Below 600, you may face higher rates or need a co-signer. You can check your score free of charge through Borrowell (Equifax) or Credit Karma (TransUnion).
Can I pay off a personal loan early in Canada?
Most Canadian personal loans allow early repayment, but lenders may charge a prepayment penalty — typically 3 months' interest for fixed-rate loans. Variable-rate personal loans generally allow early repayment with no penalty. Always check the loan agreement before signing. The extra payment field in our calculator shows how much interest you can save by overpaying each month without triggering a formal prepayment.
Why do Canadian mortgages compound semi-annually?
Canadian law requires fixed-rate mortgage interest to be compounded semi-annually, not in advance. This means the effective monthly rate is slightly lower than simply dividing the annual rate by 12. This calculator applies the correct conversion so your payment matches a Canadian lender quote.
What is the difference between an open and closed mortgage?
An open mortgage can be repaid in full at any time without penalty, but carries a higher rate. A closed mortgage has a lower rate but limits prepayments; repaying beyond the allowed amount triggers a penalty, usually the greater of three months interest or the Interest Rate Differential.
How does the Bank of Canada rate affect my loan?
The Bank of Canada policy rate sets the benchmark for lending. Variable-rate loans and lines of credit move with it, so payments rise when it increases and fall when it decreases. Fixed-rate loans are locked until the term ends.
Canadian Consumer Credit Regulation
Federal oversight comes from the Financial Consumer Agency of Canada (FCAC), which enforces disclosure rules for federally regulated lenders (banks). Provincial regulators oversee credit unions and provincial lenders. The Criminal Code prohibits interest rates above 60% APR (the criminal rate). For free credit counselling, contact the Credit Counselling Society (nomoredebts.org) or your provincial credit counselling service.