Cost of Borrowing Calculator
This calculator adds fees to the interest on a loan and shows the true total cost of borrowing, including a cost-per-$100 figure for easy comparison. Enter your own numbers — the defaults are examples.
How this calculator works
The advertised rate is only part of the story. The cost of borrowing is the interest plus every mandatory fee you pay, expressed in dollars. In Canada, lenders must disclose the cost of borrowing before you sign.
Formula: the amortised payment is P × r / (1 − (1 + r)^−n). Total payments are payment × n. The total cost of borrowing is (total payments − P) + fees, and the cost per $100 borrowed is total cost ÷ P × 100.
The cost-per-$100 figure is the same yardstick used for payday loans, where the federal cap is $14 per $100 borrowed. It makes two very different products comparable: a $200 fee on a $10,000 loan is $2 per $100, while a $42 fee on a $300 two-week advance is $14 per $100.
Include only fees you must pay. Optional insurance and refundable deposits should be shown separately, because you can decline them. If a lender will not itemise its fees in writing, treat that as a reason to look elsewhere.
This is an illustration, not a quote. Two offers with the same rate can cost different amounts once fees, insurance, and prepayment terms are included, so compare the total cost of borrowing rather than the headline rate.
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Frequently Asked Questions
What counts as a fee?
Mandatory charges such as an administration, origination, broker, or documentation fee. Optional insurance should be listed separately because you can decline it.
Why use cost per $100?
It normalises loans of different sizes so you can compare them on one scale. It is the same measure used for the payday-loan cap of $14 per $100.
Is the APR the same as the cost of borrowing?
No. The APR expresses the annualised rate including certain fees, while the cost of borrowing is the total dollar amount you pay over the life of the loan.
Can fees be financed?
Some lenders add fees to the principal, which means you pay interest on them too. This calculator treats fees as an upfront cost added to the total.
Last updated: September 16, 2026 · By the Instalment.ca Editorial Team
We research Canadian lending rules and update these pages when the law, the data, or the available offers change. We are not a lender and we do not provide personal financial advice.
Instalment.ca is a loan matching and comparison service, not a lender.
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This is general information, not financial, legal, or tax advice.
Rates and terms vary by lender, creditworthiness, and province. Figures shown are examples only.