Enter the amount, interest rate and term of any fixed-rate loan to see your payment and how much interest you will pay in total.
How loan payments are calculated
This calculator uses the standard amortization formula: each payment covers the interest accrued since the last payment, and the rest reduces the balance. Early payments are mostly interest; later payments are mostly principal.
Typical rates in Canada
| Type of borrowing | Typical rate range |
|---|---|
| Secured line of credit (HELOC) | Prime + 0.5% to 1% |
| Unsecured personal loan (bank) | 8% to 13% |
| Car loan | 5% to 10% |
| Online or alternative lenders | 15% to 35% |
| Credit cards | 20% to 23% |
Since January 2025, the maximum legal interest rate for most loans in Canada is 35% APR.
How to pay less interest
- Choose the shortest term you can afford.
- Pay bi-weekly instead of monthly.
- Make lump-sum prepayments when allowed.
- Improve your credit score before applying.
FAQ
Is this for car loans too?
Yes, but our car loan calculator also adds sales tax, fees and trade-in.
What about mortgages?
Mortgages compound differently in Canada. Use the mortgage payment calculator.