How is the monthly loan payment calculated?

It uses the standard amortising loan formula: payment = P × r / (1 − (1 + r)^−n), where P is the principal, r is the monthly interest rate (APR divided by 12), and n is the number of months. Each payment is identical, but early payments are mostly interest and later ones mostly principal.

What APR is typical for a Canadian personal loan?

Unsecured personal loans from Canadian banks and credit unions commonly range from about 5% to 20% APR depending on your credit score, income and the lender. Fintech and alternative lenders may go higher. Use the exact rate from your loan offer for an accurate result.

How does the loan term affect total interest?

A longer term spreads the principal over more payments, so each monthly payment is smaller — but because you owe the balance for longer, you pay more total interest. Shortening the term raises the monthly payment but can save a large amount of interest over the life of the loan.

What is an amortisation schedule?

An amortisation schedule lists every payment over the loan's life, splitting each into the portion that covers interest and the portion that reduces the principal balance. It shows exactly how your debt shrinks month by month and how much of your money goes to interest versus paying down what you borrowed.

Does this include fees or insurance?

No. The calculator models principal and interest only. Some Canadian loans carry origination fees, optional creditor insurance, or prepayment terms that change the real cost. Check your loan agreement and add any fees separately to understand the full amount you will pay.

Canada Personal Loan Calculator

Email me this result

Get this tool's output sent to your inbox, plus one useful tool a week. No spam, unsubscribe any time.

A Canada personal loan calculator that turns a loan offer into the numbers that actually matter: your fixed monthly payment, the total interest you will pay, and a full month-by-month amortisation schedule. It uses the same standard amortising formula every Canadian bank, credit union and fintech lender uses, so you can sanity-check a quote, compare terms, or see how much a lower rate would really save you.

How it works

A personal loan is an amortising loan: you make equal monthly payments, each covering that month’s interest plus a slice of principal, until the balance reaches zero. The payment is fixed by this formula:

payment = P × r / (1 − (1 + r)^−n)

where P is the amount borrowed, r is the monthly rate (APR ÷ 12), and n is the number of monthly payments. Early in the loan most of each payment is interest because the balance is large; as the balance falls, more of each payment chips away at principal. The calculator computes the payment, then walks the schedule month by month, applying interest first and reducing the balance with the remainder.

Example and notes

Suppose you borrow $15,000 at 9% APR over 4 years (48 months). The monthly payment works out to about $373, total interest is roughly $2,910, and the total repayable is about $17,910. Drop the rate to 6% and the monthly payment falls to around $352, saving over $1,000 in interest across the term — which is why shopping the rate matters.

Notes: the result is principal and interest only. Real Canadian loans may add origination fees, optional creditor insurance, or prepayment penalties — check your agreement. Making extra payments toward principal shortens the term and cuts total interest, since interest is always charged on the remaining balance. Everything is calculated in your browser.