Personal Loan Calculator (Canada)
Last updated
Standard personal-loan amortization. Monthly compounding (NOT semi-annual like mortgages). Accepts loan amount, rate, and term; outputs monthly payment, total paid, and total interest. Matches the math used by EQ Bank, Tangerine, and Canadian big-bank personal loan calculators.
Standard amortization on monthly compounding. The same math every Canadian bank and online lender uses for unsecured personal loans. The Interest Act's semi-annual rule does NOT apply — that's mortgage-only.
How this calculator works
r = annualRate ÷ 12 (monthly compounding)
payment = P × r × (1+r)^n / ((1+r)^n − 1)
where P is principal and n is term in months.
Worked example
$15,000 at 9.99% over 36 months.
- Monthly rate: 9.99% ÷ 12 = 0.8325%
- Monthly payment:
$483.93 - Total paid over 36 months:
$17,421.48 - Total interest:
$2,421.48
Cross-check: EQ Bank, Tangerine, and major-bank personal loan calculators all return the same monthly payment within rounding for the same inputs.
Same loan over 60 months instead of 36: monthly drops to ~$318, but total interest grows to ~$4,103. Stretching the term to lower the monthly payment costs more total interest — the standard trade-off for any amortizing loan.
Frequently asked questions
Personal loan vs line of credit — which is cheaper?
Lines of credit (LoC) usually have lower rates (often prime + 1–3%), but they're variable — your rate moves with the Bank of Canada's prime rate. Personal loans are usually fixed-rate and 1–4 percentage points higher, but you know exactly what you'll pay every month for the life of the loan. For a known short-term need (e.g., a renovation paid off over 3 years), a personal loan's payment certainty is often worth the rate premium. For ongoing variable use (e.g., emergency reserve, gradual home improvements over 5+ years), a LoC's flexibility usually wins.
Why is monthly compounding used here instead of semi-annual?
The Interest Act of Canada s. 6 mandates semi-annual compounding for mortgages only. All other consumer credit — personal loans, lines of credit, credit cards, car loans — uses monthly compounding by industry convention. The annual rate the lender quotes IS the annual nominal rate compounded monthly; no conversion needed.
What rate should I expect?
Personal loan rates in Canada typically range 7–18% APR depending on your credit profile, the loan amount, and the lender. Big-bank rates tend to start higher (~9–11%) but can drop with strong credit and existing relationships. Online-first lenders (EQ Bank, KOHO, Mogo) sometimes offer competitive rates for prime borrowers but charge sharply more for sub-prime. Credit-union rates often beat both for members with established history. The Financial Consumer Agency of Canada publishes a credit-card-and-loan-rate disclosure standard that should make comparison easier — always ask for the APR (which includes mandatory fees), not just the nominal rate.
Can I prepay without penalty?
For most Canadian personal loans: yes, fully open prepayment with no penalty. This is the standard convention but NOT universal — some lenders charge a small administrative fee for early payoff, and some cap how much you can prepay in a year. Always ask before signing whether the loan is 'open' (full prepayment any time) or 'closed' (prepayment limited to a percentage per year, with a penalty for above that). Open loans are common for personal loans; less common for mortgages.
Sources
Every figure on this page traces back to a primary Canadian authority. See the complete sources index for the master list.
Verified against EQ Bank, Tangerine, RBC, TD personal loan calculators on .
Important
This calculator is for informational purposes only. It is not financial, tax, mortgage, or legal advice. Tax rates, mortgage rules, and contribution limits change. Always verify current rules with the relevant Canadian authority and consult a licensed professional before making financial decisions.