Calculate your monthly loan payment, total interest, and full amortization schedule for any loan.
Rates as of Q2 2025 (example)
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This general-purpose loan calculator estimates the monthly payment, total interest, and full amortization schedule for any fixed-rate, fixed-term loan — whether it's a personal loan, line of credit converted to fixed payments, debt consolidation loan, or any other type of instalment loan.
This calculator uses the standard amortizing loan formula, which produces a fixed monthly payment for the life of the loan (assuming no extra payments). Each payment is split between interest (calculated on the current balance) and principal, with the interest portion shrinking and the principal portion growing over the life of the loan.
Formula: Monthly Payment = Loan Amount × [r(1+r)n] ÷ [(1+r)n − 1], where r is the monthly interest rate (Annual Rate ÷ 12 ÷ 100) and n is the number of monthly payments (Loan Term × 12). Total Cost = Loan Amount + Total Interest.
Example: A CA$20,000 loan at an 8% interest rate (example rate — enter your actual rate) over a 5-year term gives a monthly payment of roughly CA$405.53, with total interest of about CA$4,332 over the full term — a total cost of about CA$24,332. (Note: this example is for illustration purposes only and does not represent a loan offer.)
Personal loans in Canada are offered by banks, credit unions, and online lenders, typically as either secured loans (backed by collateral, such as a vehicle or savings, usually at lower rates) or unsecured loans (based on creditworthiness alone, usually at higher rates). Under Canadian law, lenders must disclose the cost of borrowing, including the Annual Percentage Rate (APR) and total cost of credit, before you sign a loan agreement — comparing the APR (not just the headline interest rate) across lenders gives a fairer comparison, since APR can include certain fees. Be especially cautious of high-cost credit products like payday loans, which carry very high effective annual rates and are intended only for short-term, small-dollar borrowing — they are rarely a good fit for the kind of loan modelled by this calculator. If you're consolidating multiple debts (credit cards, other loans) into a single loan, our Debt Consolidation Calculator can help you compare the combined cost against your current debts.
This calculator works for any fixed-rate, fixed-term loan with equal monthly payments, including personal loans, debt consolidation loans, and lines of credit that have been converted to fixed instalment payments. For mortgages, auto loans, or student loans, our dedicated calculators may offer features more specific to those loan types.
The interest rate is the basic rate charged on the loan balance. The Annual Percentage Rate (APR) is a broader measure that can include certain fees and charges associated with the loan, expressed as a yearly rate - Canadian lenders are required to disclose the cost of borrowing, which helps you compare loans on a more equal footing. This calculator uses the interest rate you enter; for a more complete cost comparison, check the APR disclosed by each lender.
A secured loan (backed by collateral such as a vehicle, home equity, or savings) typically offers a lower interest rate because the lender has recourse if you don't repay, but you risk losing the collateral if you default. An unsecured loan doesn't require collateral but usually carries a higher interest rate to compensate the lender for the additional risk. The right choice depends on your situation, what collateral you have available, and your comfort with the associated risk.
Lenders generally offer lower interest rates to borrowers with higher credit scores, as this indicates a lower perceived risk of default. If your credit score has improved since you took out a loan, refinancing or consolidating at a lower rate might be worth considering - though always factor in any fees or penalties for paying out the original loan early.
Payday loans typically carry very high effective annual interest rates and are designed for short-term, small-dollar borrowing until your next paycheque - using them for larger amounts or longer periods, or relying on them repeatedly, can lead to a costly debt cycle. If you're considering a payday loan, it's worth exploring alternatives first, such as a personal loan, line of credit, or speaking with a credit counsellor.
Many personal loans allow early repayment, but some charge a prepayment penalty or require a minimum interest period - check your specific loan agreement. If penalty-free prepayment is allowed, the extra monthly payment feature in this calculator can show how much you could save in interest by paying more than the minimum each month.
Disclaimer: The information, rates, and figures provided on this page are for educational and illustrative purposes only and do not constitute a loan offer or financial advice. The default interest rate is a sample value and does not reflect rates currently available from any specific lender. This calculator does not include fees, APR, or insurance that may apply to a real loan. Always obtain a personalised quote, including the full cost of borrowing disclosure, from a lender before making borrowing decisions, and consult a qualified financial adviser or credit counsellor if you have concerns about debt.