Loan calculator
Use this free Canadian loan calculator to work out the monthly payment, total interest and total cost of any loan.
Estimated monthly payment
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How this calculator works
- Convert the annual interest rate to a monthly rate by dividing it by 12.
- Set the number of payments to the term in years multiplied by 12.
- Apply the amortisation formula to find the fixed payment that clears the balance over the term.
- Subtract the original amount from the total of all payments to find the total interest.
Formula: M = P × r ÷ (1 − (1 + r)^−n), where r = annual rate ÷ 12 and n = number of months
Frequently asked questions
Does this calculator include fees?
No. This calculator shows the cost of interest only. Use the loan total cost calculator or the APR calculator to include fees in the cost.
Why is my lender's payment slightly different?
Lenders may round the payment, use a different day-count convention, or add fees and insurance to the balance. Use this as an estimate and confirm the exact payment in your agreement.
What happens if I choose a longer term?
A longer term lowers the monthly payment but increases the total interest paid, because you are paying interest for more months.
Sources
- Interest Act (R.S.C., 1985, c. I-15) — Government of Canada — Justice Laws
Important legal information
Promissory.ca is not a lender, bank, mortgage broker or credit counsellor. We do not make lending decisions and we do not charge you a fee to use this service.
Submitting an application does not guarantee approval. All applications, rates and terms are set and approved solely by the individual lender or licensed professional.
Rates, fees and loan amounts vary by lender, province, loan type and your credit profile. Advertised rates are the lender's lowest offered rate and may not be available to you.
Lenders may perform a credit check with one or more credit bureaus, including Equifax and TransUnion. A hard credit inquiry may affect your credit score.
There is no obligation to accept any offer presented to you. Review every agreement carefully before signing.
Borrow only what you can reasonably afford to repay. Late or missed payments may result in additional fees, collection activity and negative credit reporting.
We handle personal information in accordance with the Personal Information Protection and Electronic Documents Act (PIPEDA). See our Privacy Policy for how we collect, use and protect your information.
If you are struggling with debt, consider contacting a non-profit credit counselling service or a Licensed Insolvency Trustee before borrowing more.
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Compare loan optionsAffiliate disclosure: Promissory.ca is a free comparison and referral service. We may receive compensation from lending partners when you click a partner link or submit an application. This compensation does not affect the information or comparisons we publish.