Loan calculator
Canada · 2026 rates
Also for United StatesFind out what a personal loan, car loan or other fixed-rate loan will cost you each month, how much interest you will pay in total, and how quickly the balance comes down.
Year-by-year repayment schedule
| Year | Principal repaid | Interest paid | Balance left |
|---|
How loan payments are calculated
Most personal and car loans are repaid in equal monthly payments. Each payment covers that month's interest, and the rest reduces the amount you owe. Early on, more of each payment goes to interest. As the balance falls, more goes towards the loan itself.
The payment is worked out with the standard formula payment = P × r ÷ (1 − (1 + r)−n), where P is the amount borrowed, r is the monthly interest rate and n is the number of monthly payments.
Examples
- A $20,000 personal loan at 8% over 5 years costs $405.53 a month, with $4,331.67 of interest in total.
- A $35,000 car loan at 7% over 7 years costs $528.24 a month, with $9,372.48 of interest in total.
For a mortgage, use our Canadian mortgage calculator, because fixed-rate mortgages in Canada are compounded semi-annually.
Frequently asked questions
Does this work for a line of credit?
A line of credit usually has a variable rate and only requires interest or a small minimum payment. Use this calculator to see what a fixed monthly payment would need to be to clear the balance in a set time.
Should I enter the interest rate or the APR?
Enter the interest rate. Lenders usually also show the annual percentage rate (APR), which includes fees. Using the APR gives a slightly higher estimate that is closer to the full cost of borrowing.
Can I pay off a personal loan early?
Many personal loans let you prepay without a penalty, which cuts the interest you pay. Check your loan agreement first.
Estimates for guidance only. Your lender's figures may differ slightly because of fees, payment dates and how interest is charged.
Last checked and updated: October 2026