Calculate your student loan payment, including interest that accrues and capitalizes during a deferment or grace period.
Rates as of Q2 2025 (example)
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This calculator estimates your monthly student loan payment, including how much interest can accrue and "capitalize" (be added to your principal) during a grace period before repayment begins, along with the total interest you'd pay over the full repayment term.
If interest accrues during your grace period, it compounds monthly and is added ("capitalized") to your loan balance once the grace period ends - meaning you'll pay interest on that accrued interest too, going forward. The monthly payment is then calculated using the standard amortization formula based on this new, larger balance, the interest rate, and your repayment term.
Formula: Balance at Repayment = Loan Amount × (1 + Monthly Rate)Grace Period Months. Capitalized Interest = Balance at Repayment − Loan Amount. Monthly Payment = standard amortization formula using Balance at Repayment, the interest rate, and repayment term. Total Interest = Capitalized Interest + Interest Paid During Repayment.
Example: A CA$25,000 student loan at a 6% interest rate (example rate — enter your actual rate) with a 6-month grace period before a 10-year repayment term would accrue about CA$759 in interest during the grace period, bringing the starting repayment balance to roughly CA$25,759. The resulting monthly payment would be about CA$285.98, with total interest of approximately CA$9,318 over the full repayment (including the capitalized grace-period interest). (Note: this example is for illustration purposes only.)
Government student loans in Canada come from two main sources: the federal Canada Student Loans Program (administered through the National Student Loans Service Centre, or NSLSC) and provincial/territorial student loan programs (which vary by province - some provinces have integrated systems, like Quebec's separate program). A significant policy change took effect in April 2023: the federal government permanently eliminated interest on the federal portion of Canada Student Loans (and the federal Canada Apprentice Loan) - meaning federal student loans no longer accrue interest, even after the grace period. However, the provincial/territorial portion of a student loan may still charge interest depending on your province, and private student lines of credit from banks (often used to cover costs beyond government loan limits) almost always charge interest from the time funds are disbursed. This calculator's interest and grace-period capitalization model is most relevant to interest-bearing provincial loans or private lines of credit - for an interest-free federal loan, you could enter a 0% rate to model just the principal repayment. The standard grace period (called "non-repayment period") for Canada Student Loans is 6 months after leaving school, during which no payments are required (and under current rules, the federal portion doesn't accrue interest during this time either). The Repayment Assistance Plan (RAP) can also reduce or eliminate payments based on income for those who qualify.
As of April 2023, the federal government permanently eliminated interest on the federal portion of Canada Student Loans and the Canada Apprentice Loan - the federal portion no longer accrues interest, including during the non-repayment (grace) period. However, this rule applies only to the federal portion; provincial/territorial loan portions and private lines of credit may still charge interest. Policies can change, so verify current rules with the National Student Loans Service Centre (NSLSC).
The grace period (called the "non-repayment period" for Canada Student Loans) is typically 6 months after you leave school, during which no payments are required. Under current federal rules, the federal portion doesn't accrue interest during this period either. For provincial portions or private loans, interest may still accrue and be added (capitalized) to your balance when repayment begins, increasing the amount you'll ultimately repay.
RAP is a federal program that can reduce your required monthly payment - potentially to CA\$0 - based on your income and family size, for borrowers who are struggling to make their regular student loan payments. It's applied for through the NSLSC and must be reapplied for periodically. It's generally a better option than missing payments or defaulting, which can have serious credit consequences.
Yes, Canada Student Loans (and most provincial loans) can generally be repaid early or in larger amounts without penalty. Since federal loans no longer charge interest, extra payments toward an interest-free federal loan simply reduce the principal you owe with no interest savings - but extra payments toward an interest-bearing provincial or private loan portion would reduce both the balance and future interest.
Interest paid on loans under the Canada Student Loans Act, the Canada Student Financial Assistance Act, or similar provincial/territorial student loan programs may be eligible for a non-refundable federal and provincial tax credit - but this generally doesn't apply to private lines of credit or loans from other sources. Keep your interest payment records and check current CRA guidance, since the federal portion of most loans is now interest-free in any case.
Before missing payments, contact the NSLSC (for federal/provincial loans) about the Repayment Assistance Plan, which can reduce or eliminate payments based on income. For private lines of credit, contact your lender directly to discuss hardship options. Defaulting on a student loan can result in collections action, damage to your credit score, and loss of eligibility for future government student aid.
Disclaimer: The information, rates, and figures provided on this page are for educational and illustrative purposes only and do not constitute financial advice. The interest rate used is an example only - federal Canada Student Loans currently do not accrue interest (a policy that has changed in the past and could change again), while provincial and private loan portions may charge interest. Always verify current rates, grace period rules, and repayment assistance programs with the National Student Loans Service Centre (NSLSC), your province, or your lender, and consult a qualified financial adviser for personalised advice.