--- title: "Canadian personal loan calculator with APR | AumnI tools" description: "Work out the payment, interest and total cost of a Canadian personal loan with a fee, and compare it with the APR and cost of borrowing your lender discloses." url: https://aumnitools.com/ca/tool/personal-loan-calculator category: "Financial" country: "Canada" updated: 2026-11-08 --- # Personal Loan Calculator Banks in Canada must quote the APR and the term whenever they advertise a rate on a fixed-amount loan, and the APR has to be as prominent as the interest rate. This calculator turns a loan amount, rate, term and fee into a monthly payment, total interest, an APR and the total cost in dollars. ## Canada rules and figures - Banks must give the APR and the loan term when advertising a rate on a fixed-amount loan, and must show the APR as prominently as the interest rate. - FCAC disclosure examples also state how interest is compounded, such as twice a year on fixed-rate mortgages. - Mortgage APR is subject to section 6 of the Interest Act, which is why mortgages use half-yearly compounding. - The current consolidated Cost of Borrowing Regulations text was not read; these notes come from FCAC pages and decisions. - The cost of borrowing is the total of interest and fees over the life of the loan, so a loan with a lower rate but higher fees can cost more. Sources: [FCAC: Information box examples](https://www.canada.ca/en/financial-consumer-agency/services/industry/bulletins/information-box-examples.html) (checked 2026-11-08); [Consumer Measures Committee: Agreement for harmonization of cost of credit disclosure laws](https://ised-isde.canada.ca/site/consumer-measures-committee/en/formal-agreements/agreement-harmonization-cost-credit-disclosure-laws-canada) (checked 2026-11-08); [FCAC: Decision #128](https://www.canada.ca/en/financial-consumer-agency/services/industry/commissioner-decisions/decision-128.html) (checked 2026-11-08) ## How the personal loan calculator works Payments are equal and monthly, and interest is worked out each month at one twelfth of the annual rate on the remaining balance. The fee does not alter the payment, but it reduces the money you receive, so the APR the tool solves for is higher than the interest rate you type. Formula: `payment = amount × h × (1 + h)^months ÷ ((1 + h)^months − 1), with h as the annual rate ÷ 12` - The rate box is labelled Annual percentage rate (APR) and cost of borrowing (%) and is used as the loan's interest rate. - The APR in the results is solved from the amount received after the fee and all the payments. - Mortgages are different: they compound twice a year, but this loan calculator uses monthly interest for personal loans. - Years and extra months add up to the number of payments, so 4 years is 48 payments. - A rate of 0% is accepted and splits the amount evenly over the months. ## How to use the personal loan calculator 1. **Enter amount and rate.** Type the amount you plan to borrow and the rate from the lender's quote. 2. **Set the term.** Put whole years in the first box and any remaining months in the second. 3. **Add the fee.** Enter any administration or origination fee in dollars, or 0 if there is none. 4. **Review the cost.** Read the payment, the interest, the APR from your figures and the total cost with the fee. 5. **Check the schedule.** The amortization tab shows how the first twelve payments divide between interest and principal. ## Example: An $18,000 loan at 11% repaid across four years, with a $150 fee Forty-eight payments of $465.22 include $4,330.53 of interest; adding the fee, the cost comes to $22,480.53. Payment 1 splits into $165.00 of interest and $300.22 of principal. The APR from these figures is 11.45%, a little above the 11% rate because of the fee. A 2-year term costs $838.94 a month and $2,134.59 of interest, while 6 years costs $342.61 a month and $6,668.17. ## When to use the personal loan calculator - **Comparing the cost of borrowing.** Run two quotes with different rates and fees to see which costs less overall. - **Picking a term.** Compare 2, 4 and 6 years to see payment against total interest. - **Checking a quoted APR.** Put in the amount, rate, term and fee and compare the APR the tool finds with the lender's figure. - **Fitting a monthly budget.** Adjust the amount until the monthly payment fits what you can pay. ## What the personal loan calculator does not do - The APR is calculated from the numbers you enter. The lender's disclosed APR follows its own rules, so compare with the information box. - Only the first twelve payments appear in the schedule table. - Fixed-rate loans paid on time are modelled; late fees, prepayment penalties and variable rates are not. - Interest is monthly. A lender that compounds differently can produce a slightly different payment. - Credit insurance and other optional products are not included unless you add their cost to the fee box. ## When something else is a better fit - **When you would like to clear the loan early**, use the [Early Payoff Calculator](https://aumnitools.com/tool/early-payoff-calculator.md). - **When you are weighing several lenders**, use the [Loan Comparison Tool](https://aumnitools.com/tool/loan-comparison-tool.md). - **When you need the exact cost of borrowing**, use the disclosure box your lender gives you before you sign. ## Questions about the personal loan calculator ### What must a bank show when it advertises a loan rate? On a fixed-amount loan, the APR and the loan term, with the APR shown as prominently as the interest rate. ### What is the monthly cost of $18,000 at 11% over four years? It is $465.22 a month, which means $4,330.53 of interest over the term. Counting the $150 fee, you pay $22,480.53 in all. ### Why is the APR above 11%? Because the fee comes out of what you receive. You get $17,850 but repay on $18,000, so the APR from these figures is 11.45%. ### How much does a shorter term save? A 2-year term costs $2,134.59 in interest against $4,330.53 over 4 years and $6,668.17 over 6 years, though the 2-year payment is $838.94 a month. ### Is this the same as a mortgage calculation? No. Mortgages compound twice a year under the Interest Act, but this tool uses monthly interest for personal loans. ## Related tools - [Loan Comparison Tool](https://aumnitools.com/tool/loan-comparison-tool.md): Compares loan offers side by side on monthly payment, total interest and total cost - [Early Payoff Calculator](https://aumnitools.com/tool/early-payoff-calculator.md): Shows how much time and interest an extra monthly payment saves on a loan - [Debt Payoff Calculator](https://aumnitools.com/tool/debt-payoff-calculator.md): Compares avalanche and snowball debt payoff by months to payoff and total interest ## About this page Runs in your browser: what you enter is processed on this device and is not uploaded. Estimates for planning only, not financial, tax or legal advice. Check figures that matter with a qualified professional. Last checked against the tool's code on 2026-11-08. Interactive version: https://aumnitools.com/ca/tool/personal-loan-calculator