Are you looking to apply for a personal loan in Canada?
You can use the loan payment calculator below to estimate how much interest you will be paying over the term of your loan and how long it will take to repay the loan.
It will also help you understand how the interest rate and term of the loan affect your payments.
This loan payment calculator can be used to estimate the cost of personal loans, lines of credit, etc.
How To Use The Loan Payment Calculator
1. Enter the Loan amount. This is how much you plan to borrow.
2. Enter the interest rate. The interest rate reflects the cost of your loan and is a percentage of the principal amount you are borrowing. It is expressed on an annual basis and may be referred to as the Annual Percentage Rate (APR).
3. Enter your monthly installment payments.
4. Click on the “Calculate” button to see the results.
Example
Assuming you are borrowing $5,000 at a 5% interest rate and your monthly payment is $200. It will take you 26 months to repay the loan and you will pay approximately $286 in interest fees.
What is a Personal Loan?
A personal loan refers to money you borrow from a lender with an agreement to pay back the loan over a period of time. You can use a personal loan for almost any purpose, including:
- Debt consolidation
- Home renovations
- Emergency purchases
- Vacation
- Car repairs, etc.
Some key terms you should understand before taking a personal loan are:
Loan amount: This is your principal balance. It is how much money you borrow from a lender.
Loan term: This is how long it will take you to repay a loan. For example, a 5-year loan term means you are expected to repay your loan within 60 months.
Interest rate: Most personal loans have a fixed interest rate that stays the same throughout the loan term. The interest rate is calculated as a percentage of the loan paid to the lender as a borrowing fee.
Payment frequency: This is how often you will be making payments. It can be weekly, biweekly, or monthly.
How To Compare Personal Loans in Canada
You can get a personal loan from your bank or credit union. These loan comparison platforms can also come in handy:
Loans Canada
Loans Canada is a loan comparison platform for all kinds of personal loans, car loans, debt consolidation loans, and bad credit loans. It has partnerships with some of Canada’s largest lenders and offers free access to your Equifax credit score.
Interest rate: 1.99% to 46.96%.
Loan term: 4-60 months.
Maximum loan amount: Up to $50,000.
LoanConnect
LoanConnect is a search engine for finding personal loans online from various lenders. You can use it to find a loan that works for your situation regardless of your credit score.
Interest rate: 6.99% to 46.9%.
Loan term: 3-120 months.
Maximum loan amount: Up to $50,000.
Loanz
Loanz is a lending platform for individuals with bad credit or no credit. You can use it for various types of personal loans in Canada.
Interest rate: 29.9% to 46.96%.
Loan term: 12-60 months.
Maximum loan amount: Up to $15,000.
Related:
- No Credit Check Loans
- Best Personal Loans in Ontario
- Debt Consolidation Loans in Canada
- Easy Online Loans in Canada
Best Personal Loan Interest Rates
You will need a ‘good’ to ‘excellent’ credit score if you want access to personal loans at competitive interest rates in Canada.
Credit score ranges are as follows:
- Excellent credit score: 760 – 900
- Very good credit score: 725 – 759
- Good credit score: 660 – 724
- Fair credit score: 560 – 659
- Poor/bad credit score: 300 – 559
You can check your credit score for free.
While it is easier to get a personal loan when your credit score is 660 and higher, there are also options for bad credit loans.
Bad credit personal loans have higher interest rates.
Related:
- 10 Strategies To Avoid Payday Loans
- Guaranteed Approval Loans in Canada
- Personal Loan Options in Alberta
- Payday Loan Alternatives in Canada
You can also check out our car loan payment and compound interest calculators.
Disclaimer: Calculation results are approximations and for informational and educational purposes only.
