Personal Loan
Calculator Canada 2026
Calculate your Canadian personal loan payments. Enter amount, APR and term for total interest, total cost and a year-by-year amortization schedule — plus the two things the APR does not tell you: the 35% legal ceiling, and whether your loan is open or closed.
Read the full answer — method, rates and figures
Quick answer: Canadian personal loan payment formula: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the loan amount, r is APR ÷ 12 ÷ 100, and n is the term in months. Example: $10,000 at 8.04% APR — roughly the Statistics Canada average — over 60 months is $202.96 a month and $2,177 of total interest. Canadian personal loans are unsecured, typically $1,000–$50,000 over 12–84 months. THE LEGAL CEILING IS 35% APR: since 1 January 2025 section 347 of the Criminal Code sets the criminal rate of interest at an APR above 35%, replacing the old 60% effective annual rate (about 48% APR); commercial loans of $10,000–$500,000 are capped at 48% and above $500,000 are uncapped, and payday loans are carved out under s.347.1 and regulated provincially. Because the cap is measured on APR and APR includes compulsory fees, a fee-loaded 29% headline can breach it. Federally regulated lenders must disclose APR under the Cost of Borrowing Regulations. Rate by credit profile: 760+ about 6-10%, 660-759 about 10-18%, 560-659 about 18-30%, below 560 30%+ up to the cap. Bank of Canada overnight rate 2.25%. There is NO statutory prepayment right in Canada — an OPEN loan prepays free, a CLOSED loan typically costs about three months of interest, and the difference is invisible in the APR. Credit bureaus are Equifax Canada and TransUnion Canada; Experian does not run a Canadian consumer bureau. Interest is deductible only under ITA 20(1)(c) where the funds earn income from a business or property — never for personal use, and not for TFSA or RRSP contributions.
Monthly Payment
$205.17
Capital & interest
Total to Repay
$12,310
Total Interest
$2,310
What this means for you
A $10,000 personal loan at 8.50% APR over 60 months costs $205.17 per month. You will repay $12,310 in total, of which $2,310 is interest. For comparison, the same $10,000 on a standard credit card at 24.9% APR would cost roughly $7,576 in interest over the same period — choosing a personal loan saves you about $5,266. Personal loan interest is not deductible in Canada for personal use — only under ITA 20(1)(c) where the money earns income from a business or property. Before signing, ask whether the loan is open or closed: an open loan prepays free, a closed one typically costs about three months' interest, and the APR does not tell you which it is.
Monthly payment by loan size and APR
Capital-and-interest repayment over a 60-month (5-year) term. Even small APR differences add up: a 2-point cut on $10,000 over 5 years saves roughly $582 in interest.
| Loan | 6.0% | 8.0% | 10.0% | 12.0% | 15.0% | 20.0% | 25.0% |
|---|---|---|---|---|---|---|---|
| $3,000 | $58 | $61 | $64 | $67 | $71 | $79 | $88 |
| $5,000 | $97 | $101 | $106 | $111 | $119 | $132 | $147 |
| $10,000 | $193 | $203 | $212 | $222 | $238 | $265 | $294 |
| $15,000 | $290 | $304 | $319 | $334 | $357 | $397 | $440 |
| $25,000 | $483 | $507 | $531 | $556 | $595 | $662 | $734 |
Illustrative monthly payments over 5 years. Use the calculator above for your exact loan, APR and term.
Where to compare Canadian personal loan rates
Three tiers price very differently, and it is worth a quote from more than one. The big banks — RBC, TD, Scotiabank, BMO and CIBC — advertise roughly 6%–10% APR for well-qualified borrowers and price tightest for existing clients whose income and cash flow they already see. Credit unions are frequently competitive and sometimes more flexible on a thin or bruised credit file, though they are provincially regulated rather than federally, so disclosure rules differ. Alternative lenders such as Fairstone, easyfinancial and Spring Financial will approve files the banks decline, but price far higher — commonly in the high twenties and up to the 35% ceiling.
Get pre-qualification quotes before submitting full applications: a quote is a soft inquiry and does not affect your score, while every full application is a hard inquiry recorded on your file. Canada has no equivalent of the UK soft-search comparison ecosystem, because Experian does not operate a Canadian consumer bureau — your two files sit at Equifax Canada and TransUnion Canada, and they can disagree. When you compare, compare APR: a lower headline rate carrying a compulsory insurance premium or administration fee can be the more expensive loan, and because the 35% criminal rate is itself measured on APR, fee-loading is also how a nominally legal quote crosses the legal line.
Last reviewed 20 August 2026 by the Richify AI editorial team.
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A Canadian personal loan is an unsecured fixed-term loan, typically $1,000 to $50,000, repaid in equal instalments over one to seven years. Because there is no collateral, the lender prices it on your credit file, income and existing debts. The Annual Percentage Rate is the all-in cost — interest plus most compulsory fees — expressed as one annualized figure, and federally regulated lenders must disclose it under the Cost of Borrowing Regulations made under the Bank Act.
For example, a $10,000 loan at 8.04% APR — roughly the Statistics Canada average — over five years costs $202.96 a month. You repay $12,177 in total, $2,177 of interest on top of the $10,000. Stretch the same loan to seven years and the monthly cost falls to $156.06 while total interest rises to $3,109. Cut it to three years and the monthly cost jumps to $313.55 while total interest falls to $1,288. After the rate itself, term length is the single biggest lever on what the loan costs you.
The 35% ceiling — Canada's criminal rate of interest
Canada puts a hard legal cap on consumer borrowing that most calculators never mention. Since 1 January 2025, section 347 of the Criminal Code sets the criminal rate of interest at an APR exceeding 35%, down from the previous ceiling of 60% effective annual rate — about 48% APR. Charging, receiving, or even offering or advertising a rate above the cap is a criminal offence, not merely an unenforceable term. The 35% figure applies to consumer loans; commercial loans between $10,000 and $500,000 are capped at 48% APR, and commercial loans above $500,000 are not capped at all.
Two practical consequences. First, because the cap is measured on APR and APR includes compulsory fees, a lender advertising 29% and loading required fees on top can cross the legal line even though the headline rate looks compliant — which is exactly why you compare APR and not the rate. Second, the cap is high enough to still be ruinous: $10,000 borrowed at the full 35% over five years costs $354.90 a month and $11,294 in interest — more than the amount borrowed. Legal is not the same as affordable.
Payday loans sit outside this. Section 347.1 carves them out where a province has its own licensing regime, which is why a payday advance can still cost several hundred percent annualized while remaining lawful. If a quote is above roughly 30% APR, the question to ask is not whether it is legal but whether the borrowing should happen at all.
Open vs closed — the question the APR does not answer
Canada has no statutory prepayment right for personal loans of the kind the UK gives borrowers. Instead the loan is either open — prepayable in full or in part at any time, no penalty — or closed, fixed in rate and term, and typically carrying a prepayment charge of around three months' interest. Most variable-rate personal lines and many bank personal loans are open; fixed-rate instalment loans from alternative lenders often are not. The distinction is invisible in the APR, is rarely volunteered, and can cost several hundred dollars if you expect to repay early. Ask before signing, and check that the answer appears in the agreement.
Soft vs hard inquiries — and which bureau
Canada has two consumer credit bureaus, Equifax Canada and TransUnion Canada, and lenders may pull either or both, so your score can differ between them. Experian, which dominates soft-search comparison in the United Kingdom, no longer runs a Canadian consumer bureau — so British-style eligibility checkers do not transfer here. Checking your own score, or getting a pre-qualification quote, is a soft inquiry and does not affect your score. A full application triggers a hard inquiry that is recorded and visible to later lenders; several in a short window can lower your score and read as distress. Collect pre-qualified quotes first, then apply once.
Personal loan vs credit card
Canadian credit cards typically charge 19.99%–22.99% on purchases. Carrying $10,000 at 19.99% and clearing it over five years costs $264.88 a month and $5,893 in interest; the same $10,000 as a personal loan at 8.04% costs $202.96 a month and $2,177 — a difference of roughly $3,700 for identical borrowing. Paying only the card minimum is far worse again, stretching the balance for decades. A genuine 0% balance-transfer promotion beats a personal loan if you are certain to clear it before the promotional rate expires; otherwise the loan wins on cost and on having a fixed end date.
Tax treatment — it depends on the use, not the loan
Interest on borrowing for personal purposes — a car, a renovation, a wedding, consolidating consumer debt — is not deductible in Canada. Interest is deductible under paragraph 20(1)(c) of the Income Tax Act where the borrowed money is used for the purpose of earning income from a business or from property: financing a business, or investing in non-registered securities capable of paying dividends. The test is the use of the funds rather than the label on the loan, and the CRA expects the money to be traceable to the income-earning use. Borrowing to contribute to a TFSA or an RRSP is not deductible, because neither produces taxable income from property. For nearly all consumer borrowing, the APR you see is paid from after-tax income and is the real cost.
How to use this calculator
- Enter the amount you want to borrow. Canadian personal loans typically run from $1,000 to $50,000. Borrowing a little more can sometimes reach a better rate tier, but only borrow what you actually need — the interest is paid from after-tax income.
- Enter the APR. If you do not know your personalized rate, get a pre-qualification quote from a bank, a credit union and an alternative lender before applying formally. Statistics Canada puts the average personal loan rate near 8.04%; expect roughly 6%–10% with excellent credit, 10%–18% with good credit, and 18%–30% with fair credit.
- Choose your term in months. Canadian personal loans usually run 12 to 84 months. A shorter term means a higher monthly payment and materially less total interest — on $10,000 at 8.04%, going from 84 months to 36 months cuts total interest from $3,109 to $1,288.
- Choose your repayment frequency. Most Canadian personal loans are repaid monthly by pre-authorized debit, though some lenders offer weekly or biweekly schedules aligned to payday. The calculator shows weekly as one fifty-second of the annual cost for indicative comparison.
- Review the results: monthly payment, total interest, total to repay, and the comparison table by APR and loan size. Before signing, ask the lender two questions the APR does not answer — is the loan open or closed, and is any insurance a condition of approval, because required insurance premiums belong in the APR.
❓ Frequently Asked Questions
How is a Canadian personal loan payment calculated?
Canadian personal loans use the standard amortization formula M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the loan amount, r is the APR divided by 12 and by 100, and n is the term in months. A $10,000 loan at 8.04% APR over 5 years costs $202.96 per month and $2,177 in total interest. Federally regulated lenders must disclose the APR under the Cost of Borrowing Regulations made under the Bank Act, and APR includes interest plus most compulsory fees — so it is the figure that lets you compare offers like for like rather than the headline interest rate.
What is the maximum interest rate on a personal loan in Canada?
35% APR. Since 1 January 2025 the criminal rate of interest in section 347 of the Criminal Code has been an annual percentage rate exceeding 35%, replacing the previous ceiling of 60% effective annual rate — roughly 48% APR. Charging, receiving or even offering to charge above the cap is a criminal offence, not merely unenforceable, and lenders may not advertise a rate above it. The 35% cap applies to consumer loans; commercial loans between $10,000 and $500,000 sit at 48% APR and commercial loans above $500,000 are not capped. Payday loans are carved out separately under section 347.1 and are regulated province by province, which is why a payday advance can still cost far more than 35% annualized.
What personal loan interest rate can I expect in Canada in 2026?
Statistics Canada puts the average personal loan rate at about 8.04%, and the realistic range runs from roughly 6% to the 35% legal ceiling depending on your credit profile. As a guide: excellent credit (760+) typically sees 6%–10%; good credit (660–759) 10%–18%; fair credit (560–659) 18%–30%; and below 560 you are usually looking at 30%+ or an alternative lender. The Bank of Canada overnight rate is 2.25%, which anchors what banks pay for funds but is only loosely connected to unsecured consumer pricing — your credit file matters far more than the policy rate.
What's the difference between APR and the interest rate?
The interest rate is the cost of borrowing the principal. The APR is the all-in annualized cost including most compulsory fees — administration, brokerage or insurance required as a condition of the loan. For most bank and credit-union personal loans in Canada there are no upfront fees, so APR equals the interest rate. Where fees do apply, typically with brokers and alternative lenders, the APR is materially higher than the headline rate. This matters more in Canada than it looks: because the 35% criminal rate is measured on APR and includes fees, a lender loading fees onto a 29% headline rate can push the true cost over the legal line.
Can I pay off a Canadian personal loan early without a penalty?
It depends whether the loan is open or closed, and Canada has no statutory prepayment right for personal loans equivalent to the UK's Consumer Credit Act. An OPEN loan can be prepaid in full or in part at any time without penalty — most variable-rate personal lines and many bank personal loans are open. A CLOSED loan has a fixed rate and term and may charge a prepayment penalty, commonly around three months' interest. Ask before you sign, because the difference is invisible in the APR and can cost several hundred dollars if you expect to repay early. The loan agreement must state the prepayment terms.
Is a personal loan cheaper than a credit card in Canada?
Almost always, over any meaningful term. Canadian credit cards typically carry 19.99%–22.99% purchase APR. A $10,000 balance at 19.99% repaid over five years costs $264.88 a month and $5,893 in interest; the same $10,000 as a personal loan at 8.04% costs $202.96 a month and $2,177 in interest — a saving of roughly $3,700. Paying only the minimum on a card is far worse again, stretching the debt for decades. The exception is a genuine 0% balance-transfer promotion you are certain to clear before it expires; otherwise the personal loan wins on both cost and certainty of an end date.
Does my credit score affect the rate, and which bureau do Canadian lenders use?
Credit score is the single biggest driver of your rate. Canada has two consumer credit bureaus — Equifax Canada and TransUnion Canada — and lenders may pull either or both, so your score can differ between them. Note that Experian, which dominates soft-search comparison in the UK, no longer operates a Canadian consumer bureau, so UK-style eligibility checkers do not apply here. A soft inquiry, such as checking your own score or a pre-qualification quote, does not affect your score. A hard inquiry is recorded and visible to future lenders; several hard inquiries in a short window can lower your score, so get pre-qualified quotes before submitting full applications.
Is personal loan interest tax-deductible in Canada?
Not for personal use. Interest on money borrowed for a car, a renovation, a wedding or debt consolidation is not deductible. Interest IS deductible under paragraph 20(1)(c) of the Income Tax Act where the borrowed money is used for the purpose of earning income from a business or from property — for example borrowing to invest in non-registered securities that can pay dividends, or to fund a business. The test is the USE of the funds, not the type of loan, and the CRA expects you to be able to trace the money to the income-earning use. Borrowing to contribute to a TFSA or an RRSP is not deductible, because those do not produce taxable income from property.
How much can I borrow, and over what term?
Mainstream Canadian personal loans generally run from $1,000 to $50,000, with some banks lending more to existing clients with strong credit. Terms are usually 12 to 84 months. Term choice is the biggest lever on total cost after the rate itself: $10,000 at 8.04% costs $2,177 in interest over 60 months, $1,288 over 36 months, and $3,109 over 84 months. Stretching the term lowers the monthly payment and raises the total by nearly a thousand dollars in this example, which is the trade-off most borrowers underestimate.
Where should I compare Canadian personal loan rates?
Three tiers price very differently. The big banks — RBC, TD, Scotiabank, BMO and CIBC — advertise roughly 6%–10% APR for well-qualified borrowers and price tightest for existing clients whose income they already see. Credit unions are often competitive and sometimes more flexible on credit history, though they are provincially regulated rather than federally. Alternative lenders such as Fairstone, easyfinancial and Spring Financial approve thinner credit files but price much higher, frequently in the high twenties to the 35% ceiling. Get pre-qualified quotes from more than one tier before submitting a full application, and always compare APR rather than the headline rate.
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