Loan Payment Calculator
This calculator shows the fixed monthly payment on an amortised loan, plus the total you repay and the total interest. Enter your own amount, rate, and term — the defaults are examples, not a quote.
How this calculator works
A fixed-rate loan is repaid in equal payments. Each payment covers the interest owed for that period and puts the rest toward the principal, so the balance falls steadily and reaches zero on the last payment.
Formula: payment = P × r / (1 − (1 + r)^−n), where P is the principal, r is the monthly interest rate (annualRatePct ÷ 100 ÷ 12), and n is the number of months. When the rate is 0%, the payment is simply P ÷ n.
Total paid is the payment multiplied by the number of months. Total interest is total paid minus the principal. Because the interest rate is charged on the declining balance, the interest portion of each payment is larger at the start of the term and smaller at the end.
This is the same mathematics a lender uses to build an amortisation schedule, but it is an illustration only. A real offer may include an administration fee, optional insurance, or a different compounding convention, and the APR you are offered depends on the lender, your creditworthiness, and your province. Ask for the APR and the total cost of borrowing in writing before you sign.
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Frequently Asked Questions
What does the monthly payment include?
It includes principal and interest on an amortised schedule. It does not include optional insurance, late fees, or any administration fee a lender may charge. Add those to the cost-of-borrowing calculator for a fuller picture.
Why is most of my early payment interest?
Interest is charged on the outstanding balance, which is highest at the start. As the balance falls, the interest portion falls and more of each payment goes to principal.
Does a longer term lower the payment?
Yes, a longer term lowers the monthly payment but usually increases the total interest, because you pay interest for more months.
Is this a loan quote?
No. It is an illustration using the numbers you enter. Only a lender can quote a rate, and that rate depends on your application.
What is the federal limit on interest in Canada?
The federal criminal rate of interest is 35% APR, in force since 1 January 2025. Lenders that charge more commit a criminal offence. Provincial rules can be stricter.
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.