Loan Payment Calculator Canada (2024)

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.


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:

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: 2.99% to 46.96%.

Loan term: 4-60 months.

Maximum loan amount: Up to $50,000.


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.


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.

Secured vs Unsecured Personal Loans

A secured loan is where you use some form of security or collateral to back the loan (e.g. your vehicle or home). If you default on your loan, the lender can take possession of this collateral to get their funds back.

Secured loans may have lower interest rates because there is less risk involved for the lender. They can also be a suitable option if you don’t have a great credit score.

An unsecured loan is a loan where no security is needed. More risk is involved for the lender, so interest rates may be higher, but not always.

How Long Do You Have to Pay Off a Personal Loan?

How long you must pay off a personal loan depends on the lender’s terms.

However, the repayment period is usually between six months and five years. The term can be longer or shorter, and it depends on the size of the loan and the interest rate.

When you use a personal loan calculator, you can change the term to determine how much you can expect to pay each month.

A longer term will mean you pay a lower amount each month, but you will pay back more in interest over the term.

How to Apply for a Personal Loan

First, know exactly how much you want to borrow. Create a household budget to determine how much you can afford each month.

Now is also a good time to use a personal loan payment calculator to work out how much your loan will cost.

Then compare lenders, starting with the loan comparison platforms listed on this page. Find out the terms, amount you can borrow, interest rates, etc.

Once you have chosen a lender, you can usually apply online. There may be a form on the website where you can fill in the details requested, like your personal information, employment history, Social Insurance Number, income, etc.

The lender will carry out a hard credit check. This can have a small and temporary impact on your credit score, so avoid applying for lots of loans in a short period.

Once you have been approved for a loan, the funds will normally be transferred into your bank account within a few days.

Personal Loan Fees

As well as using a loan payment calculator in Canada to find out how much your loan will cost, there are several fees that you should know about:

  • APR represents the annual cost of the loan, including the fees.
  • The origination or administration fee is a fee the lender may charge to set up the loan.
  • Prepayment fees may apply if you repay your loan early, but not all personal loans come with these.
  • Late fees are often charged if you pay after the due date.

Pros and Cons of Personal Loans


  • Easy application process.
  • Quick to get funds.
  • Lots of lenders to choose from.
  • You can use funds for almost any purpose.


  • Personal loans can be expensive.
  • They can sometimes come with fees.
  • They can negatively impact your credit score if you default.

Personal Loan Alternatives

There are several alternative options that you might want to consider instead of a personal loan:

Credit Card

Credit cards are a convenient option, especially if you already have one and don’t have to apply for a loan. But the interest rates can be high.

Personal Line of Credit

A personal line of credit is where you are given a maximum amount that you can borrow from the lender, and you can borrow from this as you need it. You then only pay interest on what you borrow.


If you are a homeowner, you can access equity in your property with a home equity line of credit (HELOC).

This is the same principle as the personal line of credit, but your property secures the loan, so interest rates are often lower.

Payday Loan

These short-term loans are usually for smaller amounts than personal loans, and they are designed to cover immediate needs.

Interest rates are high, and they are usually repaid within a few weeks.

Mortgage Refinancing

You could refinance your mortgage to access equity in your property and borrow against your home’s value.

What Can a Personal Loan Be Used For?

You can use a personal loan for almost any purpose. Here are some of the most common uses:

  • Emergency Expenses – You may need to take out a loan to fix your car, pay a medical expense, or pay another unexpected cost.
  • Vacation – A personal loan could help cover a vacation’s cost.
  • Consolidate Debt – If you already have several debts, you could use a personal loan to consolidate them into one debt with one monthly payment.
  • Renovations – You could use a personal loan to cover a large one-off expense like a home renovation.
  • Special Event – Take out a personal loan to help cover the costs of a special event like a wedding or birthday.

What to Consider When Applying for a Personal Loan

Keep the following information in mind when you decide to apply for a personal loan:

  • Loan Term – This is the length of the loan in months, and it will determine how much you will pay back each month and in total.
  • Interest Rate – A lower interest rate means you pay less in total.
  • Lender Reputation – Aim to choose a trustworthy lender with a good reputation.
  • Collateral – If you are getting a secured personal loan, decide whether you are willing to risk your car or property.
  • Fees – Always understand the fees involved, including the origination fee and any others you may need to pay.
  • Access to Funds – How quickly will you receive the funds into your account after the loan has been approved?

Common Loan Terms

  • Interest – The amount that the lender charges to lend you money.
  • APR – The total annual loan cost, including interest and fees.
  • Principal – The total amount that you borrow.
  • Term – The number of months you have to repay the loan.
  • Cosigner – Someone who signs with the borrower and is obligated to repay the loan if the borrower fails to make the payments.
  • Credit Score – A number between 300 and 900 that the lender will check to determine your creditworthiness.


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.

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