Personal Loan Calculator (Canada)

A personal loan is a fixed sum you repay in equal monthly instalments over a set number of months, often to consolidate debt, cover a large purchase or fund a project. Because the rate is fixed and the schedule known, the payment and total interest can be worked out exactly before you sign. This calculator also lets you add an origination fee, so you can compare offers on total cost rather than rate alone. Enter the amount, the annual rate, the term in months and any one-time fee.

How the monthly payment is worked out

The annual rate is divided by twelve, and the calculator finds the one payment that, repeated every month, brings the balance to zero in the final month. It uses the standard annuity formula: the loan amount times the monthly rate, divided by one minus (1 + monthly rate) raised to the negative number of months. Mainstream Canadian lenders use the same arithmetic, so the payment here should be close to a real quote once fees are accounted for.

How an origination fee raises your effective rate

Many personal loans carry a one-time origination fee, sometimes 1% to 8% of the amount borrowed. You pay it on top of the interest while receiving only the principal, so the effective annual cost is above the advertised rate, and two loans with the same rate can differ in cost because of the fee. Enter the fee to see the total cost rise above the interest figure.

A worked example

You borrow $10,000 at 9% over 48 months with no fee. The payment is about $248.85 a month, and over 48 payments you repay about $11,945, of which about $1,945 is interest. Add a $300 origination fee and the payment stays the same, but the total cost rises to about $12,245.

A rival lender offers 8.5% with a $500 fee. Its payment is lower, about $246.48, and its interest about $1,831, but with the fee its total cost is about $12,331, so the 9% loan is cheaper overall.

Change the term on the original loan and the trade-off shows clearly: over 24 months the payment is about $456.85 and interest about $964; over 60 months the payment drops to about $207.58 and interest rises to about $2,455.

Where each payment goes

Early in the loan the balance is large, so most of each payment is interest; as the balance falls, more goes to principal. That is why an extra payment in the first year saves more than the same payment near the end. The calculator reports total interest as one figure, but the schedule is heaviest on interest early.

Choosing a term that fits your budget

After the rate, the term is the biggest lever you control. More months lower the payment and raise the total cost; fewer months do the reverse. Try several terms and pick the shortest one whose payment you can comfortably carry.

Where personal loans come from in Canada

Personal loans come from chartered banks, provincially regulated credit unions and a growing number of online and finance company lenders. Banks fall under federal cost of borrowing disclosure rules, which require the lender to state the annual interest rate, the total cost of credit and the annual percentage rate in writing before you sign. Credit unions follow parallel provincial consumer protection rules. The Criminal Code also caps the effective annual rate any lender may charge, at 35% APR since 1 January 2025, which mainly matters at the high-cost end of the market.

Reading the disclosure statement

Compare offers on the disclosed annual percentage rate and the total cost of credit. The APR folds the origination fee and certain other charges into one annual figure, the same comparison this calculator’s total cost field supports. When a lender quotes a low rate and a high fee, the APR rises above the rate, and the disclosure statement is where you see it.

Common mistakes

• Comparing loans on the monthly payment alone, when a lower payment often just means a longer term and more interest.
• Ignoring the origination fee.
• Entering an optimistic rate. Your actual rate depends on your credit profile and income.

Assumptions and limitations

This is an estimate for planning and comparison, not a binding quote. It assumes a fixed rate for the whole term, equal monthly payments, no missed or extra payments, monthly compounding and only the one-time fee you enter. It does not model variable-rate loans, late fees, insurance add-ons, prepayment penalties or the exact APR lenders must disclose. Confirm the rate, every fee and the total cost of credit with the lender in writing before borrowing.

About This Tool: Personal Loan Calculator Canada

Personal loan calculator canada: use this tool to get an instant estimate based on the figures you enter. Adjust the inputs above to match your situation, or browse all our calculators to plan your next step.