Both instalment and installment are correct: instalment is the standard spelling in Canadian and British English, while installment is the standard spelling in American English. They mean exactly the same thing: a payment made in parts, often over a set period. The choice between them is not about meaning, but about the spelling convention your audience expects.
Why do two spellings exist?
Canadian English generally follows British conventions for many words, and instalment is one of them. American English, by contrast, uses installment with a double "l". This pattern appears in other words too, such as traveller (Canadian and British) versus traveler (American), or cancelled versus canceled. The difference is not a mistake in either case; it is a regional preference that has settled over time.
For Canadian readers, instalment is the spelling you will see in federal government publications and in materials from Canadian financial regulators. The Canada Revenue Agency, for example, refers to instalment payments when describing quarterly tax payments. The Financial Consumer Agency of Canada uses instalment loans when explaining a common type of credit. Using the Canadian spelling helps your writing match the vocabulary of your audience.
What does the word mean?
An instalment (or installment) is one of several payments made over time to pay off a debt or purchase. For example, if you buy a $1,200 appliance and agree to pay $100 per month for 12 months, each $100 payment is an instalment. The word can also refer to a portion of a larger sum, such as an instalment of a tax bill or an instalment of an inheritance.
Do not confuse instalment with installation. Installation means the act of installing something, such as software or a piece of equipment. The two words look similar, but they have different meanings and different spellings. In Canadian English, installation is spelled the same as in American English.
Why the spelling matters for searching
When you search online, the spelling you type can affect the results you see. Google and other search engines usually recognize instalment and installment as variants of the same word, but the results are not always identical. A search for instalment loans Canada may surface more Canadian sources, while installment loans USA may surface more American sources. The spelling acts as a signal to the search engine about the audience you are trying to reach.
For website owners and content creators, the distinction matters for search engine optimization (SEO). Keyword research tools often show different search volumes for each spelling. If your audience is Canadian, using instalment throughout your content helps you match the queries your readers are likely to type. If you are targeting American readers, installment is the better choice. Mixing the two spellings on the same page can look inconsistent and may confuse readers, even if the meaning is clear.
For consumers, the practical tip is simple: try both spellings when you search. If one spelling does not give you the official information you need, try the other. You can also restrict your search to official sources by adding a site filter such as site:canada.ca to your query.
For official Canadian information, the spelling of the source is a reliable guide. If a page uses instalment, it is likely written for a Canadian audience. If it uses installment, it may still be relevant, but you should check the jurisdiction.
Instalment in Canadian law and government
Canadian law and government publications consistently use instalment. The federal Criminal Interest Rate Regulations (SOR/2024-114), which set the criminal rate of interest at 35% APR as of 1 January 2025, use the Canadian spelling. The Canada Revenue Agency's guidance on instalment payments uses it as well. The Financial Consumer Agency of Canada describes instalment loans as a type of credit where you repay the principal and interest in fixed payments over a set period.
This consistency is helpful for Canadian consumers. When you see instalment in an official document, you know you are reading Canadian material. When you see installment, the source is likely American or written for an American audience. That is not a hard rule, but it is a useful clue.
| Region | Preferred spelling | Notes |
|---|---|---|
| Canada | instalment | Follows British convention; used in federal government publications. |
| United Kingdom | instalment | Standard British spelling. |
| Australia and New Zealand | instalment | Generally follow British convention. |
| United States | installment | Standard American spelling. |
Common phrases and how to use them
Here are some common phrases that use the word, shown in Canadian spelling:
- instalment plan: an arrangement to pay for something in several payments.
- instalment loan: a loan repaid in fixed payments over a set term.
- monthly instalments: payments made once a month.
- pay in instalments: to pay over time rather than in one lump sum.
- instalment payments: a term used by the Canada Revenue Agency for quarterly tax payments.
If you are writing for a Canadian audience, use instalment throughout. If you are writing for an American audience, use installment. If you are writing for a mixed audience, choose one spelling and be consistent. Consistency matters more than which variant you pick.
When you search, you can use either spelling. If you are looking for Canadian information, adding Canada to your query is often more effective than changing the spelling. For example, instalment loan Canada and installment loan Canada will both return Canadian results, but the first is more likely to match Canadian sources exactly.
A note on spelling and credibility
Some readers view the use of installment in Canadian content as a sign of careless editing. That may be unfair, but it is a reality. If you want your writing to feel local and polished, use the spelling your readers expect. For Canadian business, government, and financial writing, that spelling is instalment.
At the same time, there is no need to correct others who use installment. Both spellings are correct in their own contexts. The goal is clear communication, not linguistic uniformity.
Sources and further reading
- Financial Consumer Agency of Canada: Instalment loans
- Canada Revenue Agency: Instalment payments
- Criminal Interest Rate Regulations (SOR/2024-114)
This article is general information only, not financial, legal, or tax advice. Instalment.ca is a loan matching and comparison service, not a lender.